German billionaire’s company abandons Murray & Roberts takeover

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German billionaire’s company abandons Murray & Roberts takeover | Fin24

The German conglomerate Aton, owned by the billionaire Lutz Helmig, has given up on its hostile bid to buyApart from being one of the largest engineering firms in the country, Murray & Roberts owns 50% of the Bombela Concession company, which operates the Gautrain rail service. But Aton was thought to be particularly interested in M&R's mining business. Through its shareholding in other companies, including Redpath SA, Aton provides a range of mining services in sub-Saharan Africa.

Munich-based Aton is owned by Helmig and his family. A medical doctor, Helmig started one of the largest European private medical groups, Helios Hospitals. Aton owns around a third of M&R and last year, launched a bid to buy M&R. M&R’s board fought back against the bid, claiming that the offer was opportunistic and “made at a time of unprecedented share price weakness”.

“Whilst Aton respectfully disagrees with the Competition Commission's recommendation, and remains convinced that the proposed merger does not raise any competition concerns and would result in significant public interest benefits, Aton has decided not to continue participating in proceedings before the Competition Tribunal to contest the Recommendation.”By Tuesday mid-morning, M&R's share price was down 4% to R12.66 following the news.

 

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