The board of Corporate Services Group has announces that it is in discussions regarding a possible merger with Carlisle Group.

If the merger goes ahead a new UK registered holding company would be created to acquire Corporate Services Group and Carlisle Group and would seek floatation on the Alternative Investment Market (AIM).

On the basis of the current terms under discussion Corporate Services Group shareholders would, upon completion of the merger, hold 47% of the new company and Carlisle Group shareholders would hold 53%.

The directors believe the merger offers significant potential savings, synergy benefits and would create a diversified support services business with total combined revenues approaching £1bn in 2007.