TAKEOVER BID
Murray & Roberts mining activities lure Aton
Murray & Roberts’s (M&R’s) mining-related activities are evidently the major attraction for Aton, the German company that has been waging a determined effort to take control of what was once SA’s premier construction group. The activities would fit well with Aton’s wholly owned mining technology company Redpath. In its offer document, which was released in early June, Aton seemed bearish about M&R’s other businesses, which are predominantly oil and gas with power and water making a small contribution. Until the oil price slumped a few years ago, the oil and gas business contributed about 60% of group profit. Currently the weak oil price and improved outlook for mining sees mining contribute about 50% of total profit, while oil and gas accounts for about 25%.M&R, once a construction behemoth, has seen its market capitalisation slide from nearly R29bn a decade ago to about R7.7bn at Tuesday’s close. Aton states it has no specific plans regarding divestments of noncore investments, wit...
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