Iconic South African company goes from building Sun City to liquidation

Murray & Roberts Holdings has announced that, after over a century of operation, one of its creditors has instituted liquidation proceedings, marking the end of the road for the iconic South African construction company.

It should be noted that its subsidiary, Murray & Roberts Limited, remains in business rescue, with this plan firmly on track.

Founded in 1902, Murray & Roberts is one of South Africa’s oldest companies and has played a pivotal role in building the country’s mining infrastructure over the past century. 

Between 2000 and 2010, Murray & Roberts experienced significant growth, with its project order book increasing exponentially to R42 billion and revenues quadrupling to R32 billion. 

This period was characterised by the lead-up to the 2010 FIFA World Cup and the infrastructure investment programme launched by the government to prepare South Africa for the event. 

It was also a time of global expansion as demand for mining, energy and transport infrastructure increased.

However, this momentum would not last, as the decade following the 2010 World Cup saw South Africa’s economic growth slow and infrastructure spending decline. 

This put severe pressure on construction companies, including Murray & Roberts, that are heavily reliant on government tenders for their revenue.

In addition, declining investment in new mines in South Africa added to the company’s challenges, with its local order book plunging in value. 

These issues all came to a head in November 2024 when Murray & Roberts announced it would voluntarily suspend trading in its shares and announced that one of its divisions, Murray & Roberts Limited, would be placed in business rescue.

This followed discussions with some of the division’s largest creditors and stakeholders.

In January 2025, the company announced that it had secured R250 million in financing for its South African operations.

The company said it was optimistic that it could survive, with the core of its assets and earnings coming from its underground mining business, which continues to operate as a going concern.

However, in a SENS announcement on 20 January, Murray & Roberts said the order book for the company’s other subsidiaries had been impacted by its South African unit’s placement in business rescue. 

On 27 June, the company was dealt another blow when it did not achieve the requisite quorum of shareholders to consider the proposed creditors’ voluntary winding-up of the company.

This proved to be the final nail in Murray & Roberts’ coffin, as the company confirmed on Friday, 15 August, that one of its creditors has instituted liquidation proceedings for Murray & Roberts Holdings, seeking an order for the final, alternatively provisional winding up of the company.

“Given the company’s financial position, it does not intend to oppose the liquidation application,” Murray & Roberts said.

“The company will continue to engage with its legal advisors and will update shareholders on further material developments in this regard.”

The application for the liquidation of Murray & Roberts Holdings (MRH) is unrelated to and has no impact on the business rescue proceedings of Murray & Roberts Limited (MRL).

Importantly, it also does not affect the Differential Transaction, which includes the acquisition of MRL’s subsidiary Mining Interests, including the Cementation businesses in both Africa and the Americas, by a group of investors led by Differential Capital.

The business rescue process of MRL remains on course, and the business rescue practitioners (BRPs) are satisfied with the progress to date.

Furthermore, the BRPs confirm that the MRH liquidation process has no bearing on the operations of MRL’s subsidiary Mining Interests, including the Cementation businesses. These businesses continue to operate normally.

The BRPs overseeing MRL’s business rescue remain confident that the adopted plan represents the most viable path forward.

Once implemented, it is expected to safeguard approximately 2800 jobs within the underlying businesses, with particular emphasis on protecting South African jobs within Cementation Africa.

This process is not only about stabilising businesses but also about protecting livelihoods and preserving key skills within the mining and infrastructure sectors.