Carillion has agreed a cashand-share offer for Alfred McAlpine that values the target at £572m, which is 4% lower than its original bid of about £600m. Financial Times, Daily Telegraph, The Times, Guardian

Carillion will pay 165.4p in cash plus 1.08 of new shares valued at 392.3p for each McAlpine share, valuing McAlpine shares at 558p. At the start of November, Carillion made an indicative offer of 585p a share of which about 25% was in cash.

McAlpine shareholders will end up with 29% of the combined group.

The deal will create the second largest support services and construction company in the UK after Balfour Beatty.