SMW’s Sarina Crane deal called off

Volatile conditions in the mining and infrastructure markets have caused New Zealand engineering company SMW Group’s proposed acquisition of Australia’s Sarina Crane Hire to be called off.

In a statement to the New Zealand stock exchange, SMW Group said, “While the mining and infrastructure sectors in Australia are showing signs of recovery there remains volatility within these sectors.

“Given the uncertainty within these markets the parties have mutually agreed not to proceed with the transaction at this time and the conditional agreement is now terminated.”

SMW Group announced that it had agreed to acquire Sarina Crane Hire for a reported A$35.8 million in April this year, although the deal was dependent on due diligence, regulatory and shareholder approval, and SMW Group entering into new debt facilities to finance the acquisition.