Weir Group has dropped Bank of America Merrill Lynch as its corporate broker after the bank took on a direct competitor to the British engineer as a client.

Weir, which builds equipment for miners and oil and gas companies, said yesterday that it had terminated its engagement with BAML after hearing of “a new and undisclosed conflict of interest” through unofficial channels.

Investment banks typically consult their existing clients if they fear that any new client could represent a conflict of interest. Weir did not identify the third party, but two people with knowledge of the situation named the company as IMI, another UK engineer.

IMI's chief executive Mark Selway is a former chief executive of Weir and took over IMI in January. – (Copyright The Financial Times Limited 2014)