Balfour Beatty will become the first building contractor in the FTSE 100 since Tarmac left in 1992. It will replace HBOS in the January 19 shake-up.
The company, which is building the Aquatic Centre for London’s 2012 Olympics, has a market capitalisation of about £1.6bn. It has operations in the UK, US, Dubai and Asia.
'It’s a badge of honour being the first contracting firm in the FTSE 100 in more than 15 years,' said Ian Tyler, chief executive. 'Until recently it was inconceivable that it could happen.'