Murray & Roberts shutting down after 120 years

Published: 7 hours ago

Murray & Roberts, one of South Africa's oldest and most iconic construction companies, is facing the end of its operations after over 120 years, following the initiation of liquidation proceedings by one of its creditors. The announcement marks a historic moment for a company that has played a central role in building South Africa's mining and infrastructure sectors.

Founded in 1902, Murray & Roberts grew to become a key player in the nation's development, particularly in mining, energy, and transport infrastructure. The company experienced significant expansion between 2000 and 2010, with its project order book increasing to R42 billion and revenues quadrupling to R32 billion. This growth was fueled by infrastructure investments ahead of the 2010 FIFA World Cup and rising global demand for mining and transport projects.

However, the post-2010 decade brought mounting challenges. Economic growth slowed in South Africa, government infrastructure spending declined, and investments in new mining operations dwindled, putting considerable strain on companies reliant on public tenders. For Murray & Roberts, these pressures culminated in November 2024, when the company voluntarily suspended trading in its shares and placed one of its divisions under business rescue.

Despite securing R250 million in financing for its South African operations in January 2025 and expressing optimism about the survival of its underground mining business, the company's wider subsidiaries continued to struggle. In a SENS announcement on 20 January, Murray & Roberts acknowledged that the financial difficulties of its South African unit were affecting the order book of its other operations.

The company's woes deepened on 27 June when it failed to achieve the required shareholder quorum to approve a creditors' voluntary winding-up. This setback ultimately paved the way for the current liquidation proceedings. On 15 August, Murray & Roberts confirmed that one of its creditors had instituted legal action to secure either a final or provisional winding-up order. The company stated it does not intend to oppose the application and will continue consulting with legal advisors while keeping shareholders informed of any material developments.

The liquidation of Murray & Roberts underscores the ongoing challenges facing South Africa's construction sector, particularly for companies heavily reliant on government contracts and domestic infrastructure investment. It also marks the end of a century-long legacy that helped shape the nation's mining and construction landscape.

Shareholders, employees, and industry observers now face the uncertain task of navigating the company's dissolution, as South Africa bids farewell to one of its most storied corporate names.
- dailyinvestor