Balfour in Talks With Carillion to Form $5 Billion Builder

Balfour Beatty Plc, the U.K. construction company whose chief quit in May after predicting a profit drop, is in merger talks with rival Carillion Plc to form the country’s biggest builder with a market valuation of about 3 billion pounds ($5 billion).

A deal would create a market-leading service and construction business able to serve more clients and cut costs, the builders said in a statement yesterday, adding that they’re trying to develop a strategy and business plan. Balfour and Carillion surged as much as 13 percent and 14 percent respectively in London trading today.