Cemex in talks with Ireland’s Readymix for buyout
Readymix plc announced it had begun talks with Cemex Espana which has expressed interest in taking full control of the company.
In a statement, Readymix said it had been informed by Cemex Espana’s Readymix Investments that it would be ready to make a EUR0.22/share cash offer to buy the shares not already owned by the Cemex Group.
Readymix noted that Cemex’s approach was preliminary and a formal bid was not certain to emerge.
Readymix has been been facing difficult trading conditions in its domestic market of Ireland. Sales fell 18 per cent in the first nine months of 2011, compared to the same period last year.
In an interim management statement Readymix said third-quarter sales fell to EUR12.9m in the first nine months of the year, compared to EUR13.8m in 2010.
Losses declined in the most recent three-month period. In the third quarter of 2011 operating losses were EUR2.5m, down from EUR3.5m for the same period of 2010.
Management said the company continued to endure the effects of the construction meltdown, but offered a suggestion that the sector may be bottoming out.