A day after it upped its offer for rival Mowlem, Carillion has announced financial close on one of the UK's largest hospital projects.
In a joint venture with the Royal Bank of Scotland the Wolverhampton-based construction firm will finance and build the new Queen Alexandra Public Private Partner-ship project for the Portsmouth Hospitals NHS Trust.
The 1,200-bed acute hospital will incorporate acute treatment facilities from three current locations in Portsmouth.
In addition to the initial construction work Carillion will also provide facilities management and maintenance services for the hospital over the course of the 35-year
concession period, generating in total over £1 billion of turnover for the company.
Carillion chief executive John McDonough said the financial close helped confirm that Carillion really was a market leader.
Carillion raised its cash and shares offer for Mowlem from 205 to 220 pence a share late on Wednesday evening.
This would value the company at about £313 million and compares with an agreed all-cash offer of 205p worth £290 million it made earlier this month.
It is not yet clear whether rival bidder Balfour Beatty will launch a counter-offer for Mowlem.
Shares closed down 5.5p at 295p.