Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Downer EDI has suspended the review of its mining business, owing to the market volatility caused by the coronavirus pandemic.
“As we said when we announced the portfolio review, Downer’s mining business is a leader in Australia with a proven track record and it is well positioned to build on its strong market position and pipeline of work,” said Downer CEO Grant Fenn on Monday.
Fellow-listed Perenti, which had previously confirmed that it was considering a potential acquisition of Downer’s mining services division for up to A$700-million, on Monday said it continued to believe that the potential acquisition had strategic merit; however, it considered that structuring and funding a transaction in the current market environment would not be in the best interest of shareholders.
“We will maintain a watching brief on the situation and do not rule out re-engaging with Downer if market conditions improve,” Perenti group MD Mark Norwell said.
“It is important we maintain discipline around our growth strategy. Creating value for our shareholders is always at the forefront of our thinking and will continue to be as we execute against the initiatives detailed in our 2025 Group strategy.”