Construction company Costain announced this morning that it is taking over infrastructure and maintenance peer May Gurney through an all-share deal.
Costain shareholders will own 53 per cent of the combined group – which will be known as Costain May Gurney – while May Gurney investors will retain 47 per cent.
The joint business will turn over about £1.6 billion a year and will have an order book worth some £3.9bn.
David Allvey, chairman of Costain, said: “We see this coming together of two established UK companies as good news for all our stakeholders.
“Our customers are increasingly demanding a broader range of integrated services and this powerful combination will enhance our status as a ‘tier-one’ engineering solutions provider.”
May Gurney bought engineering firm Turriff in 2011 for £13.6 million, while Costain took over Aberdeen-based oil and gas engineering advisory business ClerkMaxwell in the same year.
Costain also operated the Westfield open-cast mine near Kinross – the largest open pit in Europe – between 1961 and 1973.