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Murray & Roberts (M&R) this week announced that it has withdrawn its proposal to merge its business with that of construction company, Aveng.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.

M&R said:

“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