CRH and Cemex mega deal?

18 March 2008

CRH and Cemex are in talks that could lead to the sale of US$ 3.5 billion to US$ 4.5 billion of US and European Cemex assets to CRH. According to a statement from Ireland-based CRH, the businesses in question in Florida and Arizona are operations that Cemex is required to divest by the US Department of Justice, following its acquisition of Rinker.

In addition to these mandatory divestments, CRH has expressed an interest in acquiring Cemex's US concrete pipe business, all of the company's materials and products operations in the pacific Northwest of the US, as well as Utah, Wyoming, Nebraska, New Mexico and El Paso, Texas, Cemex's aggregates operations in Kentucky and various other isolated cement and gypsum operations.

In Europe discussions centre on a Cemex cement plant in Catalonia, Spain, and ready mixed concrete and aggregates businesses in Austria and Hungary.

CRH says it still has to complete due diligence on any potential deal, and that any acquisition would be subject to regulatory approval from the appropriate national antitrust authorities.

In addition to its discussions with Cemex, CRH has recently completed for bolt-on acquisitions in the US with a total value of US$ 350 million. It has acquired Florida-based Conrad Yelvington Distribution Inc. (CYDI), which it says is the largest rail distributor of aggregates in the Southeast US. It handles some 10 million tonnes of material each year through 27 terminals.

CRH's materials division has bought Oregon-based Eugene Sand & Gravel, which produces aggregates, asphalt and ready-mixed concrete, and also has a paving division. It has also bought Cessford Construction, an aggregates producer in Iowa and Illinois.

In the Mid-Atlantic region it has acquired McMinn's Asphalt and Prospect Aggregates, based in Pennsylvania, which has quarrying, asphalt and concrete businesses.


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Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Deputy Editor, Editorial, UK – Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
Eleanor Shefford Brand Manager Tel: +44 (0) 1892 786 236 E-mail: [email protected]