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J. Murphy & Son's buys Carillion's UK power framework business

Carillion went into liquidation last month after failing to secure a rescue deal in talks with lenders and the government
Carillion
Carillion employees will join Murphy as part of the deal

British engineering and construction company J. Murphy & Son’s Limited has bought the UK power framework business of collapsed Carillion PLC (LON:CLLN).

Carillion went into liquidation last month after the contractor failed to secure a rescue deal in talks with lenders and the government.

READ: Carillion boss tells MPs he's 'truly sorry' for collapse of construction contractor

The deal will see Murphy take over Carillion’s position on National Grid’s (LON:NG.) overhead electricity lines, substation and underground cable framework contracts.

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

Carillion’s employees will join Murphy as part of the deal.

Financing details not disclosed

The amount Murphy is paying for the business was not disclosed.

The UK’s Official Receiver, which manages insolvencies for the British government, has been seeking alternative contractors to complete the tasks under the contracts Carillion held and has made 829 staff redundant so far.

On Monday, Carillion sold some of its Canadian assets to insurer Fairfax Holdings Ltd for an undisclosed amount.

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