16 December 2014
Carey Olsen advises on $109 million acquisition of South African engineering company
A team from Carey Olsen’s South African BVI practice has advised MDM Engineering Group Limited on the BVI legal aspects of its acquisition by Foster Wheeler for approximately US$109 million (GB£65.3 million).
South African-based MDM Engineering is a minerals process and project management company focussed on the mining industry. Global engineering and construction company Foster Wheeler, based in Switzerland and with operational headquarters in the UK, acquired MDM Engineering by way of a merger with an existing wholly-owned BVI subsidiary of Foster Wheeler, Foster Wheeler M&M Limited.
The merger which closed on 23 October 2014 received regulatory approval from the Tanzanian Fair Competition Commission in July 2014 and by the South African Competition Commission in September 2014.
Carey Olsen advised MDM Engineering on the BVI legal aspects of the merger via the firm’s Cape Town office. Memery Crystal LLP also advised MDM Engineering and Foster Wheeler was advised by Latham & Watkins LLP and Conyers, Dill & Pearman.
Clinton Hempel, managing partner of Carey Olsen’s BVI practice noted that: “Carey Olsen’s long-standing relationship with MDM allowed us to build an understanding of their business. That knowledge, combined with our legal expertise, helped this transaction to run smoothly and efficiently. MDM Engineering is based in Johannesburg and, from our Cape Town office, we were able to provide real time advice and a seamless multi-jurisdictional service.”