Downer, MACA complete $200m mining deal

Welshpool-based MACA has completed its acquisition of Downer EDI’s mining services business, which includes contracted work on major operations in Western Australia.

The $200 million deal comes nearly two months after MACA emerged as a potential buyer for Downer’s Open Cut Mining West division, noting both companies were in discussions.

Fellow ASX-listed contractor Perenti was previously a frontrunner for the purchase; though, it was understood it could not reach an agreed sale price with Downer.

Today, NSW-based Downer said it had received $109 million from MACA and will receive a further $66 million in deferred payments over the next 12 months. The balance of proceeds (about $30 million) will be received from the unwinding of working capital balances.

MACA said the acquisition included contracted work on Fortescue Metals Group’s Eliwana iron ore mine in the Pilbara, and on the Gruyere gold joint venture in the Goldfields-Esperance region (operated by Gold Field and Gold Road Resources).

More than 96 per cent of the Open Cut Mining West workforce has accepted employment from MACA.

Managing director Mike Sutton said the deal brought MACA’s total contracted work-in-hand to $3.3 billion, as at December 31.

“… That provides a robust revenue base well past FY25,” Mr Sutton said.

“MACA remains very active with its tendering activities and is well placed to pursue a significant number of opportunities across both current and new projects.”

MACA shares closed up 2.4 per cent to trade at $1.29, while Downer closed up 0.4 per cent to $5.18.