Cimic gets ACCC tick on Macmahon

The ACCC has approved Cimic’s $174m play for Macmahon, flagging the big miners as a countervailing presence.

The combination of CIMIC and Macmahon in the mining services sector was seen to run against the countervailing power of the big mining companies.

The ACCC has pre-cleared CIMIC’s $174 million bid for Macmahon Holdings, which means the final hurdle is shareholder approval.

The competition regulator reviews some takeovers subject to public reviews but in other cases it pre-clears the deal because it doesn’t think it will substantially lessen competition.

In this case the combination of CIMIC and Macmahon in the mining services sector was seen to run against the countervailing power of the big mining companies like BHP Billiton and Rio Tinto plus competitors like Downer.

Macmahon chair Jim Walker sent a letter to shareholders today telling them to take no action pending further consideration by the board and urged them not to sell into the bid.

Macmahon is trading at 15 cents a share above the 14.5 cents a share bid price, in midafternoon deals.