HeidelbergCement interested in Hanson

HANSON plc shares were hovering around the £10.45 mark yesterday afternoon, over 20% up on their price a week ago, following the announcement last Thursday that Germany’s largest cement company, HeidelbergCement, is considering a takeover bid for the company.

On 3 May Heidelberg stated that they were currently reviewing their options with respect to their interest in Hanson plc, including the possibility of seeking to acquire the company.

Heidelberg, who earlier this year said they would target strategic acquisitions to fuel their expansion plans, are believed to have gained a toehold in Hanson over recent weeks, although the size of their stake is unknown.

The German firm has said a further announcement will be made in due course, but it added that there could be no certainty that an acquisition would result or what the terms of such an acquisition might be.

In line with the City Code on Takeovers and Mergers, Hanson have this week written to all their shareholders informing them of Heidelberg’s interest in the company.

Hanson’s current share price, which values the company at well over £7 billion, has led some city analysts to predict that Heidelberg might be prepared to offer £11.50 per share in an bid to secure a deal.

Although no formal offer has yet been made, there has been speculation in the press that such a move could start a bidding war for Hanson, with many analysts pointing to Lafarge, the world’s largest cement maker, and CEMEX as the most likely potential counter bidders.

Whether this proves to be the case remains to be seen, as CEMEX are currently focusing their attention on their £7 billion takeover of the Australian-based Rinker Group, and any such move from Lafarge would be likely to encounter competition problems.