Murray and Roberts uses section 45 of Tax Act to merge with Concor

Posted On Friday, 08 July 2011 02:00 Published by Commercial Property News
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Murray & Roberts said it is using 'section 45' of the Tax Act to merge with its subsidiary Concor, forming a single company called Murray & Roberts Construction with R6,5bn turnover.

Murray & Roberts acquired all the issued share capital of Concor for R22,30 per share, valuing it at R282,4m, in 2006.

SA’s second-largest construction group, which in April appointed Henry Lass as the new CEO to replace Brian Bruce from this month, said the merged entity was effective from this month.

The group has also appointed a new chairman Nigel Harvey, and assumes executive responsibility for the new structure.

Mr Harvey said the integration into a single entity represented a strengthened brand, core service offering and focus to develop and deploy resources. He said the merged entity would take advantage of business opportunities in Africa.

Murray & Roberts and Concor’s operating entities are expected to function within the new company through its seven operating divisions: Murray & Roberts Buildings, Murray & Roberts Western Cape, Murray & Roberts Plant, Concor Civils, Concor Engineering, Concor Mining, and Concor Roads & Earthworks. The divisions are expected to continue to grow their respective business segments, now boosted by the combined muscle of Concor’s shared services.

Mr Harvey said a single plant company, Murray & Roberts Plant, would support all the operating companies and in time, the central back office support functions, such as accounts, Information Technology, payroll would also be consolidated. "Not only will this significantly reduce costs, but it will also ensure best practice in all aspects of the business and support systems."

The group has also created a special project development division to identify long-term and larger projects. "This division will work across all operating businesses to provide the marketing, tendering and engineering design skills that were often beyond the individual budgets of the former independent operating businesses," Mr Harvey said.

"In its strategic repositioning the leadership of Murray & Roberts Construction has committed itself to a process of establishing a specific mind-set and strategy for moving forward into a future that is both complex and challenging."

"An area of growth will be that of acquisition," Mr Harvey said. "We are poised to intensify the acquisition strategy which has worked so well for the Murray & Roberts Group over the past five years. We feel now is the right time in the market to grow acquisitively and we will be particularly looking at expanding our roads and civils capacities in the Western and Eastern Cape."

Murray & Roberts Construction has entered into a joint venture with WBHO , Raubex and Halls Inglis as one of two appointed South African National Roads Agency consortia to put in a "best and final offer" for the proposed Winelands Toll Road.

Last modified on Monday, 24 June 2013 15:09

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