A proposed acquisition of Bradken has collapsed as mining markets remain volatile.
\nLate last year a private equity consortium, consisting of Bain Capital and Pacific Equity Partners, made approaches for a takeover of the construction and engineering company.
\nThe move, worth around $872 million, drove Bradken stock up 36.45 per cent in a single day.
\nHowever the deal has now collapsed.
\nAccording to Bradken, following due diligence of the consortium and the development of a proposal “the recent volatility in global commodity and financing markets has impacted the consortium’s ability to obtain financing on terms acceptable to the consortium”.
\n“As a result, the consortium has now informed the Board that it is not in a position to make a binding proposal at this time.
\n“Consequently, Bradken and the consortium have ceased all discussions in relation to the proposal.”
\nFollowing this announcement Bradken has now focused on “a number of fast-payback Capex initiatives that are designed to increase EBITDA and overall margins on existing volumes”.
\nThis includes the recent acquisition of a foundry in India and cost reduction activities.
\nBradken also has a gloomy outlook ahead, stating that while it “remains well positioned to navigate through this volatility, there are no visible signs at this stage of a turnaround in the mining cycle”.
\nThe manufacturer will announce its results in early February. <\/p>\n","protected":false},"excerpt":{"rendered":"