Hanson accept £8 billion takeover offer from HeidelbergCement
HEIDELBERGCement AG this week reached agreement with Hanson plc regarding the acquisition of the entire share capital of Hanson at a price of 1,100p per share, in cash. The recommended offer, which comes just two weeks after the German cement-maker first made public its interest in the company, values Hanson at approximately £8.0 billion.
The proposed offer per share represents a premium of approximately 50% on the average closing mid-market price of 734p per Hanson Share for the 12 months ended 2 May 2007; and a premium of approximately 29% on the closing mid-market price of 852p per share on 2 May 2007, the last day of business prior to HeidelbergCement’s expression of interest.
The combined group will become the largest producer of aggregates in the world, the second largest producer of ready-mixed concrete and the fourth largest producer of cement, with combined proforma revenues of approximately Euro15 billion and over 70,000 employees.
Describing HeidelbergCement and Hanson as a perfect fit for each other, Dr Bernd Scheifele, chief executive officer of HeidelbergCement, said: ‘We are delighted that Hanson has agreed to recommend our proposed offer. It’s a defining moment for HeidelbergCement and its shareholders, and is consistent with our focus on strategic expansion into complementary geographies, across diversified products and customer markets.
‘We believe that the combined business will be better able to respond to the evolving needs of its customers in the competitive and rapidly consolidating global building products industry.’
Mr Scheifele added that Alan Murray, chief executive officer of Hanson, had been asked to join the top management of HeidelbergCement, with a role likely to include responsibility for US and Australian operations.
Commenting on the deal, Mike Welton, chairman of Hanson, said: ‘The cash offer of 1,100p per share is more than 12 times Hanson’s EBITDA for 2006 and represents very good value for Hanson shareholders. Hanson and HeidelbergCement are highly complementary businesses and together will become one of the world’s leading building materials suppliers.’
Subject to the requisite shareholder and regulatory approvals, HeidelbergCement expect the transaction to be completed during the third quarter of 2007.
