M&R merger blocked

Murray & Roberts said regulators have prohibited the construction firm from seeking a merger with rival Aveng.

In June, the Takeover Regulation Panel (TRP) approved Murray & Roberts’ plans to look into a potential tie-up with Aveng while it is a subject of a hostile takeover by its biggest shareholder, Aton.

Following the approval, Germany’s Aton submitted an appeal to the Takeover Special Committee (TSC) requesting that the TRP approval be overturned.

On Wednesday, the TSC ruled to overturn the TRP approval and prohibit Murray & Roberts from continuing to develop the potential transaction while the Aton offer remains in place, the construction firm said.

“The board is in the process of reviewing the TSC ruling together with its legal advisors and consulting with Aveng. The board will make a further announcement regarding the proposed transaction in due course,” it said.

In a separate statement, Aveng said it noted Murray & Roberts’ intention to further engage with the company. Murray & Roberts has been in a tug-of-war with its top investor, Aton, since March when the German investment house launched a takeover bid rejected as poor value for shareholders. Murray & Roberts then proposed an all-share merger with rival Aveng in May. To prevent this, Aton bought a 25.42% stake in Aveng.