Sedgman calls off MDM deal

SEDGMAN has walked away from its £67.9 million ($A106.3 million) acquisition of London-listed, South Africa-based MDM Engineering.

Hannah Vickers

The merger, announced on November 28, detailed how MDM would be acquired by subsidiary Sedgman Africa Investments.

Sedgman entered the deal to expand its operations in Africa and in the metalliferous sector.

The combined entity, consisting of MDM and Sedgman’s South African business, was to be known as Sedgman MDM Engineering.

But as the deadline approached the company said a number of conditions precedent had not yet been met.

In March, Sedgman confirmed that the proposed merger had received all authority approvals, including from the Competition Commission of South Africa.

Earlier this month the company flagged the deal in a company update, which said the two entities were working on negotiating a revised deal after certain condition precedents could not be satisfied or waived.

“A revised merger proposal did not gain the approval of the Sedgman board,” the company said.

“Accordingly, Sedgman has formally terminated the merger implementation agreement and as such the merger will not proceed.”

Sedgman shares lost 1.7% to A56c.

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