Emeco fends off BGC Contracting takeover bid speculation

Image: BGC Contracting.

Emeco has surfaced as one of the Australian-listed companies that is showing interest in acquiring up-for-sale BGC Contracting.

The mining equipment rental business claimed it continually explored opportunities to add value to Emeco Group and its shareholders.

BGC Contracting, the group‘s national contract mining, maintenance and civil construction business, is “just one of many (opportunities) in recent times,” according to Emeco.

“None of the opportunities being explored by Emeco are sufficiently advanced to warrant disclosure,” Emeco stated in respect to its interest in BGC Contracting.

Emeco’s acquisitions in recent years have included Matilda Equipment in 2018, and Force Equipment, Orionstone and Andy’s Earthmovers in 2017.

BGC Contracting has been expected to launch a sale process of its diversified business units in the years since Buckeridge died in 2014. The sale was formally announced in February this year.

The mining business holds contracts across Australia, including agreements at the Whyalla iron ore operations in South Australia and the Boggabri coal mine in New South Wales.

BGC has appointed the company’s corporate advisor, Macquarie Capital, to lead the sale process.

Fellow contractor NRW Holdings is also reportedly lining up to make an attempt at BGC Contracting.

NRW has secured a number of major civil contracts this year, including with iron ore miners BHP (South Flank), Fortescue Metals Group (Eliwana) and Rio Tinto (Koodaideri).

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