Thu, 28 Nov 2013 | MERGER
The bosses of Mivan and Lagan Group Holdings, two main players in the Northern Ireland construction market, are looking into merging the two businesses, the BBC has reported.
The businesses hope to gain from becoming a larger group. A combined workforce would see hundreds of Northern Ireland-based staff working for the group, with additional staff based in other areas.
The thinking behind the proposal is that a bigger organisation would stand to compete more effectively to win and fulfil contracts in an increasingly competitive market.
The Lagan Group has already had plenty of experience with the merger process. It de-merged after the two Lagan brothers had an argument and divided the company between the two in 2008. Kevin Lagan now owns the group.
Earlier this year Kevin received a bullet in the post during discussions over a merger with Quinn Building Products. The talks were halted days later, but go to show the firm's existing desire to strengthen its position by buying or merging with other firms.
Mivan on the other hand, has been racked by financial troubles in recent years, reporting over £40 million in losses since 2009, thanks to bad property debts. Its day-to-day business is in a good position, however.
It has changed direction after the housing crash to focus on fit-out, and is currently just finishing work on updating Heathrow Airport terminal 2.
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