MUR - Murray & Roberts - Competition Commission Ruling On Sector Merger
MUR
MUR
MUR - Murray & Roberts - Competition Commission Ruling On Sector Merger
MURRAY & ROBERTS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1948/029826/06
JSE Share Code: MUR
ISIN Code: ZAE000073441
("Murray & Roberts" or "Group")
COMPETITION COMMISSION RULING ON SECTOR MERGER
Shareholders are advised that the Competition Commission ("Commission") has
prohibited a proposed merger by Murray & Roberts subsidiary Much Asphalt (Pty)
Ltd ("Much") with a small asphalt producer in the Tshwane area. While the merger
would result in an increase of only 5% in production output by Much, it would
establish Much in a market it cannot serve effectively from its current
established locations. The Group holds the view that this will increase
competition in that market.
The Group intends to contest the reasons given by the Commission in reaching its
decision and the inference of an uncompetitive asphalt supply market.
The decision by Much to pursue the merger with the smaller but established and
well located target producer was driven by the latter`s capacity and quality of
product challenges relative to project demand and the transport costs of bulk
materials over extended delivery distances. Much offers best-in-class noise and
atmospheric pollution abatement and product technology, national aggregate and
bitumen sourcing capability and its BBBEE Codes of Good Practice Category 3
procurement rating.
Bedfordview
16 January 2009
Sponsor:
Deutsche Securities (SA) (Pty) Ltd
Date: 16/01/2009 12:18:02 Produced by the JSE SENS Department.
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