The £369 million sterling (#417 million) offer by CRH for the British brick manufacturer, Ibstock, has become wholly conditional. This follows the settlement and registration of CRH's purchase in the market, two weeks ago, of 50.7 per cent of Ibstock's equity.
CRH is aiming to circulate the official offer document to the remaining Ibstock shareholders before the end of the week. It will contain a recommendation from the Ibstock directors to accept the 70p sterling per share offer. The offer had already been given enthusiastic backing by the Ibstock management, which was looking for a friendly buyer following the purchase of a 29.9 per cent stake, at 66p sterling per share, by Austrian company, Wienerberger Baustoffindustrie. CRH finance director Mr Harry Sheridan said the group would be happy to gain a 100 per cent stake. There has been no dialogue between CRH and Wienerberger, but once the formal offer has been made, the Austrian company will have to decide to accept or reject the offer.
Market sources say Wienerberger had been gearing itself to make a bid for the outstanding shares in Ibstock, but following the market raid by CRH, it cannot now gain control. Wienerberger has said it will be reviewing its options.
This is CRH's largest acquisition. It is over 70 per cent bigger than its previous record acquisition, the US Tilson group.
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