A finalisation of the deal will mean McAlpine and Carillion will be the second largest construction firm in the UK. The new offer valued McAlpine's shares at 585p, and is worth almost £600 million.
A spokesperson for the two companies said: "Boards of Carillion plc and Alfred McAlpine plc are pleased to announce that they have reached agreement regarding a proposed offer by Carillion.
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"Carillion and Alfred McAlpine believe that a combination of the two companies would present an excellent strategic fit, with the potential to create a company with a leading position in support services and integrated solutions."
McAlpine have also recently announced the sale of its Private Financial Initiatives portfolio to Infrastructure Investors Limited Partnership for £52.2 million. The division was put up for sale as part of McAlpine's demerger plans, announced before agreement on the Carillion offer.
PFI investments contributed £2.6 million to McAlpine’s profit last year. The sale will result in a profit on disposal of up to £24.9 million.
(DW/JM)
