Murray and Roberts takeover of Concor gets nod

Posted On Tuesday, 20 June 2006 02:00 Published by Commercial Property News
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Concor is now set to delist on 4 July

Murray & Roberts passed the last hurdle on the slightly rocky road to taking over Concor last week when the Competition Tribunal approved the merger unconditionally. Concor is now set to delist on 4 July.

Concor head Cobus Bester said on Thursday the two companies, which both had full order books, would continue operating independently.

Bester said Concor's business was largely different to that of Murray & Roberts'. Concor, for example, was active in opencast mining operations whereas its new owner had an underground business.

The few areas of potential overlap included roads, building and civil works, said Bester.

Some of Concor's clients preferred to work with Concor specifically, he said. Bester said the two companies could work more closely together in future.

Murray & Roberts undertook a due diligence study of Concor about a year ago. The company has improved since that time. "Concor is probably in its strongest position ever," said Bester, adding that most problematic contracts were out of Concor's system. These included the Coega sand bypass system that would be completed in about a month, he said.

Its revenue increased by a third and headline earnings a share by a quarter in its first half ended December, even though two of its six divisions reported losses.

Concor was first courted by Wilson Bayley Holmes-Ovcon (WBHO), but then Murray & Roberts overtook their offer. WBHO returned to the table unexpectedly a month or two later with a new offer, but bowed out again.

Murray & Roberts also parted ways with lead sponsor RMB corporate finance during the bid for Concor after the bank's asset management division bought a 9% stake in Concor at the eleventh hour and said it would vote against Murray & Roberts' offer.

Murray & Roberts' share price rose 6,4% on Thursday. Concor was unchanged at R27,10.

Last modified on Monday, 24 June 2013 14:21
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