February 7, 2018 / 12:06 PM / 8 months ago

UPDATE 1-J. Murphy & Sons buys Carillion's UK power business

(Adds details, background)

Feb 7 (Reuters) - Britain’s J. Murphy & Sons Limited has bought Carillion’s UK power framework business for an undisclosed sum, the privately held engineering and construction company said on Wednesday.

It will take over Carillion’s position on National Grid’s overhead electricity lines, substation and underground cable framework contracts and Carillion employees will join Murphy, the company said.

British construction and services company Carillion, which employed over 43,000 people globally, collapsed last month when its banks halted funding, triggering Britain’s biggest corporate failure in a decade.

The Official Receiver, which manages insolvencies for the British government, has since been looking through the about 450 contracts that Carillion was managing when it collapsed, seeking alternative contractors to complete the tasks.

Murphy will also become the new joint venture partner of Eltel, the Swedish supplier of services for infrastructure networks, on overhead line and T-Pylon framework contracts, Murphy added.

The UK’s Official Receiver has made 829 Carillion staff redundant so far but saved around 1,019 out of a UK workforce of around 18,000.

Carillion, which also operated in Canada, sold some of its Canadian assets to insurer Fairfax Financial Holdings Ltd for an undisclosed amount on Monday. (Reporting by Rahul B in Bengaluru; Editing by Kirsten Donovan)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below