Rinker Group Ltd. (RIN.AU), the subject of a US$14.25 billion takeover bid by Mexico’s Cemex SA (CX), said Wednesday it will expand its U.S. business with a new quarry in Las Vegas.
Rinker said the new quarry will lift aggregates production in that region by more than 40 per cent.
It will source its aggregates raw feed under a long-term supply agreement with Chemical Lime Company of Arizona - processing and marketing around 2Mta. The expansion follows the acquisition of the aggregates and concrete producer JR & Sons Ready Mix, in the Las Vegas region in January.
"This new agreement will further strengthen our aggregates and downstream positions in one of the fastest-growing regions of the U.S.," Chief Executive David Clarke said in a statement.
Cemex’s A$15.85 (A$19.18) a share bid for Rinker closes May 18. Rinker generates 85 per cent of its profit in the U.S.