Tribunal approves Murray & Roberts and Cementation merger
The Competition Tribunal has today, 18 May 2004, unconditionally approved the
larger merger between Murray Roberts Limited & the Cementation Company (Africa)
Ltd. Reasons for the decision will be released in due course.
Background
The transaction involves Murray & Roberts ("M&R") acquiring control of Skanska
AB"s mining contract business located in South Africa, Cementation. Skanska AB
is a Swedish company, which controls and holds 79,13% of the issued share
capital of Cementation. The transaction will result in M&R controlling
Cementation.
Skanska"s rationale is that the businesses in South Africa, Canada and Australia
do not form part of its strategic areas of business whereas M&R wishes to obtain
global coverage and certain of Cementation"s services to compliment the package
of services provided by M&R.
Both M&R (through its division RUC) and Cementation broadly compete with each
other in providing, on a tender basis, raise drilling and mining services to the
mining industry. Master Drilling is the only other player and competition
concerns were raised that this transaction would reduce the players in this
market to two.
Various players were subpoenaed to testify before the Tribunal.
Issued by: Jane Sussens Communications Advisor
Tel: (011) 483 2687
Cell: 082 920 0875
Fax: (011) 483 2686
On Behalf of: Shan Ramburuth
CEO
The Competition Tribunal
Tel: (012) 482 9204
Fax (012) 482 9201
Cell: 083 357 1685
E-Mail: shanr@comptrib.co.za
www.comptrib.co.za
Date: 18/05/2004 05:27:46 PM Produced by the JSE SENS Department
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