Adbri shareholders agree to CRH takeover

Adbri shareholders agree to CRH takeover
13 June 2024

Shareholders in Australia-based Adbri have given the green light to the takeover bid by Ireland’s CRH. According to The Australian, almost 98 per cent of the votes cast at a meeting held this week at Adbri were in favour of CRH’s acquisition of 57 per cent of Adbri shares. CRH first made a bid for the shares in December 2023, offering AUD3.20(US$2.13)/share, valuing the company at around AUD2.1bn (US$1.4bn). As part of the deal, Barro Group will retain its 43 per cent share of Adbri. 

“A combined CRH and Adbri will bring growth opportunities, new talent and innovation to continue to strengthen Adbri’s product offering in Australia,” said Samantha Hogg, Adbri’s lead independent director and chairwoman of its independent board committee. “Once the scheme is implemented, Adbri will be part of a global building materials business.” 

In February this year, Adbri said it expected demand for its products, with the exception of lime, to remain strong in 2024, and broadly in line with the previous year. Capex by the company in 2024 is forecast to be around AUD270-290m, inclusive of upgrades to its cement facility in Kwinana, which is due to operational by the end of the year. The move does, however, mark Adbri’s exit from the ASX after 62 years of trade on the exchange. 

Published under Cement News