The merging of two land management companies has put the tendering process for a massive civil buildings outsourcing contract in serious doubt, according to reports.

Procurement activity on Northern Ireland's Workplace 2010 was suspended late last year, after it emerged two of the final bidders looked set to merge.

Last week Telereal agreed a deal to takeover Land Securities' Trillium business, in a move reportedly worth £750m.

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This has left the future of the civil estate outsourcing contract hanging in the balance.

A Government spokesman said: "Procurement activity for the Workplace 2010 contract was suspended on 31st October 2008 as a result of continuing speculation that both Workplace 2010 Bidders could come under common ownership.

"The Department is now considering this latest development before making recommendations on how best to proceed."

The spokesman added: "The Department continues to affirm the importance of the Workplace 2010 principles, and the Northern Ireland Civil Service remains committed to creating a modern, flexible working environment that will enable the delivery of better public services."

(PR/BMcC)