Mexican cement maker Cemex to buy Rinker Group

Mexican cement manufacturer Cemex CAB de CV announced Friday it will offer approximately $11.7 billion in cash to acquire Australian heavy materials maker Rinker Group Ltd. in a deal that will create one of the world's largest building materials companies with revenue of over $23.2 billion. As part of the deal, Cemex will offer $65.00 cash for every American depository receipt, and will assume about $1.1 billion of Rinker's debt. The Mexican company expects the transaction to immediately add to per-share earnings, with expected pre-tax savings of $130 million in three years. Cemex is currently one of the largest cement traders in the world with over 50 operations in the Americas, Europe, Africa, the Middle East, and Asia. The company produces approximately 70 million cubic meters of ready-mix concrete per year and 160 million metric tons of aggregates per year. Rinker is one of the world's top 10 international construction materials companies with operations supplying aggregate, cement, concrete, concrete block, asphalt, concrete pipe and other construction material. The company has over 770 sites across the US, Australia and China, with approximately 85 percent of earnings coming from Rinker Materials in the US.