Cemex Chairman Lorenzo Zambrano told Rinker Group shareholders in a late-January letter that his company is extending its offer period for their shares
Cemex Chairman Lorenzo Zambrano told Rinker Group shareholders in a late-January letter that his company is extending its offer period for their shares through March 30, a move that figures to allow U.S. and Australian regulators additional time to review a takeover deal Cemex proposed in late October. The letter reiterated the original tender offer, equivalent to $65 per Rinker American depository receipt (equivalent to five Rinker Australian Stock Exchange-traded shares). The ADR have remained in the $70-$72 range since Cemex effected the takeover bid, and Rinker board members appear to be holding firm on their recommendation that shareholders reject the $65/ADR offer as too low.
Due to overlap of ready mixed and aggregate businesses in markets that include Florida and Arizona, a possible Cemex-Rinker Materials combination invites potentially greater Federal Trade Commission scrutiny than Cemex’s most recent U.S. deal, which encompassed RMC USA Inc., whose concrete, aggregate and cement operations span the Sun Belt states. The takeover of RMC USA and the rest of London-based RMC Group was consummated after about six months of review by domestic and foreign regulators.