25 April 2008
MEXICO: Cemex has launched a US$ 12.8 billion cash offer to acquire Rinker, an Australian rival with significant operations in the US. However, Rinker’s Board has dismissed the hostile offer as “highly conditional,” and says it “materially undervalues the company.”
While Cemex says it is offering a +26.2% premium on the company’s average share price in the three months preceding the offer, Rinker Chairman John Morschel dismissed the offer. The matter was still developing as iC went to print but with Rinker’s shares trading above the Cemex offer price, the Mexican company is likely to have to increase its offer to be successful.
If the merger were to go ahead, it would take Cemex’s annual revenues to US$ 23.2 billion, and give it 67000 employees in more than 50 countries.