From the
organisers of
Hillhead logo

Blue Circle welcome new bid from Lafarge

BLUE Circle Industries have welcomed a new £3.1 billion cash bid from Lafarge following last year's failed hostile takeover attempt. The latest offer of 495p a share represents a premium of 10% over the original offer of 450p last May. Lafarge, who already hold a 32% stake in Blue Circle, will also take on £1.8 billion of BCI's debt.

Most city analysts had expected the French firm to reopen negotiations with a new offer as the industrial logic of combining the two groups is said to remain strong.

Although prevented by the UK's takeover code from re-launching a further hostile bid for Blue Circle before May 2001, there are no such restrictions on Lafarge reaching an agreed deal before then.

 

Lafarge plan to make a rights issue and disposals worth a combined £2.2 billion to help fund the acquisition, and expect to extract annual cost savings of £63 million within two years of completion.

The acquisition of Blue Circle will make Lafarge the world's largest cement producer, ahead of Holderbank of Switzerland, and give the company a greater presence in Asia and South America. Annualized cement production capacity of the combined business will be approximately 150 million tonnes.

* The British Aggregates Association is calling on the OFT and DTI to investigate the BCI takeover, claiming it would have 'serious implications' for all independent companies who use cement. The Association says that, coupled with the aggregates tax, it could spell the end for many small-to-medium-size firms.

 

 

Latest Jobs