South Africa: Keep Murray & Roberts On the JSE for Local Investors to Share in the Growth Opportunity

opinion

While large corporate mergers and acquisitions are few and far in-between, the demise of Aton GmbH's takeover of construction company Murray & Roberts is an event worth celebrating. That is so even as the aborted takeover robs South Africa of desperately needed foreign investment. Family jewels should never be sold. Instead, partnerships with foreign investors best serve the local investor community.

Had the German investor succeeded in its hostile takeover, it would have robbed the JSE and South Africa of one of its last construction champions. Another major South African company would have been forced off our pension portfolios, and further limited the pool of available investment opportunities on the JSE. Murray & Roberts would now be joining the likes of Illovo Sugar, Pioneer Foods, which is the subject of a takeover by American drinks-maker PepsiCo, and milk producer Clover, also in the last steps of a takeover by an Israeli company.

The independent board of the construction company had opposed to the proposed takeover, and refused to co-operate with the German suitor. The directors did it for a different reason, but I take my hat off to them for frustrating the Germans.

Last week Murray & Roberts announced that...

See What Everyone is Watching

More From: Daily Maverick

Don't Miss

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.