JOHANNESBURG - Construction company Murray & Roberts said on Friday it had reached an agreement in principle for a potential combination with infrastructure company Aveng.
"The combination of Murray & Roberts’ oil & gas and underground mining platforms with Aveng’s McConnell Dowell and Moolmans businesses is compelling and will establish a large multinational engineering and construction group," it said.
Under the deal, which is subject to the fulfilment or waiver of a number of pre-conditions, Murray & Roberts said it proposed to make an all share offer for the entire issued and to-be-issued share capital of Aveng.
It said the process of engaging with the shareholders of both companies on the potential transaction had commenced.
Murray & Roberts is a multinational engineering and construction group with a focus on the natural resources market, specifically the mining, oil & gas and power & water sectors primarily in southern Africa, North America and Australasia.
Aveng’s Australian based business, McConnell Dowell, is a major engineering, construction, and maintenance contractor, focused on the building, infrastructure and oil & gas sectors in Australia, New Zealand and Pacific Islands, southeast Asia and the Middle East.
Aveng’s mining business, Moolmans, is one of the largest surface mining contractors in Africa, involved in all aspects across the mining value chain.
If a formal offer is made, the proposed aggregate value attributable to the potential offer shares at that time will be R1 billion .
- African News Agency (ANA)