Murray & Roberts to Be Sold Off After COVID Fallout and R1.38bn Loss

In a major blow to South Africa’s industrial sector, Murray & Roberts Limited, once a titan in construction, mining, and engineering, has announced plans to sell off its core mining business and wind down operations after becoming commercially insolvent.

On Thursday, 10 April 2025, the group revealed that its prized mining division would be sold to a consortium led by Differential Capital, following severe COVID-19 disruptions, deepening debt, and unsustainable losses.

The sale is expected to settle secured creditor debt in full, while unsecured creditors may recover between 5 to 10 cents on the rand—a harsh reality for a company that once stood among South Africa’s most respected industrial players.

“The Differential Investors are well capitalised and have recognised the world-class capabilities of Murray & Roberts in mining contracting. They are committed to preserving this expertise,” said CEO Henry Laas.

The asset disposal was endorsed by creditors through a business rescue plan passed on 8 April 2025, marking a final chapter in the 122-year history of the company.

Mounting Losses and Decline

Murray & Roberts recorded a R1.38 billion loss for the six months ending December 2024, nearly R1 billion of which came from discontinued operations. Trading in the company’s shares was suspended in late 2024.

The group had been battling a downward financial spiral since the COVID-19 pandemic began. According to Moneyweb, one of the most damaging impacts was the halting of dividends from its stake in the Bombela Concession Company, operator of Gautrain—further squeezing liquidity and working capital.

Despite efforts to cut South African bank debt from R2 billion to R409 million, the company remained R350 million short of the working capital it needed by mid-2024.

The group also suffered ongoing losses from OptiPower, its energy infrastructure division, which was plagued by project delays and procurement hurdles.

The final blow came when De Beers scaled down its Venetia diamond mine contract—one of the largest contracts held by Murray & Roberts Cementation—leaving the business with drastically reduced operational capacity in South Africa.

End of an Era

With the sale of its mining assets and no remaining operating entities or prospects for recapitalisation, the board has recommended voluntary liquidation.

This marks the end of one of South Africa’s most storied industrial names—a legacy firm that played a key role in some of the country’s largest infrastructure projects.

{Source IOL}

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