Holcim cash bid for ai

Holcim has made a uk£ 1,8 billion (€2,55 billion) cash bid for Aggregate Industries. The offer of UK£ 1,38 per share plus a UK£ 0,02 per share dividend represents a 42,2% premium on the average closing price in the three months running up to the bid.

At the time of the offer, which has been recommended by Aggregate Industries Board, Holcim had already acquired some 190 million shares in the company on the open market, representing 14,7% of its share capital.

Aggregate Industries is a major supplier of aggregates, asphalt and ready mixed concrete in the UK and US. It has total aggregate reserves of 5,1 billion tonnes and has the production capacity for 7 million m³ of concrete per year.

Holcim believes the acquisition will have an immediate positive impact on its cash flow and profits. It also expects to make annual savings through synergies of CHF 100 million (€64,5 million) by 2007.

In a separate development, Holcim has announced its entry into the Indian cement market by means of a joint venture (JV) with local player, Gujarat Ambuja Cements Ltd. Two major acquisitions through the JV company, Ambuja Cement India Ltd (ACIL), will see Holcim invest some US$ 800 million (€615 million) in cement production in India.