CONSTRUCTION company Kier Group has launched a takeover bid for professional services firm Mouchel.

Bosses say a deal would lift Kier's civil engineering unit, with Mouchel holding contracts with local authorities and agencies, such as Transport for London.

However, they added there is no certainty a deal will be completed.

Mouchel was seized by lenders RBS, Lloyds Banking Group and Barclays in a pre-pack administration in 2012 after shareholders failed to back a last-ditch restructuring to wipe out much of its £140m debt.

Kier, which has offices in Peterlee, east Durham, Newcastle and Hebburn, South Tyneside, carried out work on Durham Police's £14m headquarters, in Durham City.

Its Hebburn construction arm also previously secured £60m work on schools across Stockton, Redcar and Cleveland, Hartlepool and Sunderland.