CEMEX, the Mexican cement manufacturer, said Friday it plans to acquire Rinker Group Limited for $12.8 billion, including debt.
The deal would create one of the world’s largest building materials companies with pro forma revenue of $23.2 billion and more than 67,000 employees in more than 50 countries.
"Rinker’s strong presence in key regions of the U.S., which complements our existing U.S. operations, will significantly strengthen our ability to serve customers in the world’s largest and most dynamic building materials market," said Lorenzo H. Zambrano, Chairman and CEO of CEMEX. "At the same time, Rinker’s attractive position in Australia extends CEMEX’s global network into an exciting new market."
CEMEX expects to achieve about $130 million pre-tax of annual cost synergies by the third year following the acquisition of Rinker, primarily from the sharing of best practices and the implementation of CEMEX’s standardized business processes throughout the combined company.
CEMEX will offer $65 in cash for each American depository receipt of Rinker, a 22 percent premium to Thursday's closing price.