Murray & Roberts cans deal to merge with Aveng
The construction firm did however say that it might revisit this in future.
Murray & Roberts (M&R) this week announced that it has withdrawn its proposal to merge its business with that of construction company, Aveng. M&R did however say that it could potentially revisit this at a later date.
M&R’s largest shareholder, ATON, was opposed to the transaction. ATON is curently in the process of a hostile take-over of M&R and, according to news reports, allegedly accused M&R leadership of embarking on the Aveng deal to frustrate ATON’s offer. In the process, ATON obtained a 25 percent shareholding in Aveng, allowing it to put a halt to the merger with M&R.
M&R’s board said in a statement about the withdrawal of its proposal that it would continue to evaluate the possibility of revisiting the transaction in future.
“Notwithstanding the decision to withdraw, the board wishes to reaffirm its view that the strategic rationale for the combination of Murray & Roberts and Aveng remains compelling.”
Pictured: Daniël Grobler, Group Financial Director of Murray & Roberts