LONDON (Reuters) - British engineering contractor Babcock (>> Babcock International Group PLC) said on Monday it was no longer in the running for government contracts to maintain and develop defence property, worth up to 4.35 billion pounds when combined.

Babcock, which had tendered for three regional contracts under the Next Generation Estate Contracts framework, said it concluded after discussions with the Defence Infrastructure Organisation that it would not be awarded any of the work.

"Babcock has discussed the situation with the DIO and has concluded that Babcock will not be awarded any of the contractsforming part of Tranche 2," the company said in a statement.

The contracts are worth up to 1.8 billion pounds over a maximum of 10 years and include work in north Wales, the Midlands and East Anglia.

Two other contracts in the south-east and south-west were valued at a combined 2.55 billion pounds, according to the defence ministry.

Earlier this month, the government named a Carillion-led (>> Carillion plc) consortium as preferred bidder for a contract to manage parts of its military housing estate in Scotland and Northern Ireland, worth up to 1.7 billion pounds.

(Reporting by Karolin Schaps; Editing by Catherine Evans)

Stocks treated in this article : Babcock International Group PLC, Carillion plc