8-K

CRH PUBLIC LTD CO 8-K Report (Sep 17, 2007)

Filed September 17, 2007For Securities:CRH

Summary

CRH Public Limited Company (CRH) has announced it is in negotiations with CEMEX S.A.B. de C.V. to potentially acquire a significant portfolio of Cemex's assets across the United States and Europe. These negotiations stem from Cemex's recent acquisition of Rinker, which has prompted divestitures required by the U.S. Department of Justice. The potential acquisition targets include various U.S. operations such as concrete pipe, materials and products in several states, aggregates, cement plants, and a gypsum wallboard distribution business. In Europe, the focus is on cement, readymixed concrete, and aggregates assets in Spain, Austria, and Hungary. Investors should note that the transaction is currently in the negotiation phase and is contingent upon satisfactory due diligence, board approvals, and regulatory clearances. The potential deal size is estimated to be between US$3.5 billion and US$4.5 billion. CRH has indicated it has sufficient financial capacity to debt-finance the acquisition, suggesting a potentially transformative strategic move for the company. The filing also serves to incorporate this information into existing registration statements, making it relevant for ongoing securities offerings.

Key Highlights

  • 1CRH is in negotiations to acquire certain assets from CEMEX in the U.S. and Europe.
  • 2The potential acquisition is a result of Cemex's required divestitures following its acquisition of Rinker.
  • 3U.S. assets under consideration include concrete pipe, materials/products operations in multiple states, aggregates, cement plants, and gypsum wallboard distribution.
  • 4European assets in negotiation include cement, readymixed concrete, and aggregates operations in Spain, Austria, and Hungary.
  • 5The potential transaction size is estimated to range from US$3.5 billion to US$4.5 billion (euro 2.5 billion to euro 3.2 billion).
  • 6Completion of any deal is subject to due diligence, board approvals, and regulatory clearances.
  • 7CRH has confirmed sufficient balance sheet capacity to debt-finance the potential acquisition.

Frequently Asked Questions

This Form 6-K filing announces that CRH plc is engaged in negotiations to potentially acquire a significant portfolio of assets from CEMEX S.A.B. de C.V. located in the United States and Europe. It also serves to incorporate this announcement into CRH's existing SEC registration statements.

Cemex is divesting these assets as a requirement imposed by the U.S. Department of Justice and other antitrust authorities due to Cemex's recent acquisition of Rinker. CRH's potential acquisition would likely involve some or all of these divestiture assets.

The potential transaction size is estimated to be in the range of US$3.5 billion to US$4.5 billion (euro 2.5 billion to euro 3.2 billion). CRH has stated it has sufficient balance sheet capacity to debt-finance this potential acquisition.

The filing indicates that the acquisition is in the negotiation phase. Completion of any transaction is subject to satisfactory due diligence, the approval of the respective Boards of Directors, and the granting of required regulatory approvals. Therefore, a definitive timeline is not provided, and the outcome is uncertain at this stage.