CRH Acquisition Cleared for Takeoff: A$2.1B Deal Bolsters Australia Presence

Zinger Key Points
  • Adbri's independent shareholders and court have approved the acquisition deal by CRH and Barro Group.
  • CRH will buy 57% of Adbri shares not held by Barro for A$3.20 per share, valuing Adbri at A$2.1 billion.

CRH plc CRH shares are trading lower on Friday. The company disclosed that Adbri’s independent shareholders had approved the Scheme of Arrangement for CRH and the Barro Group to acquire Adbri Ltd.

The approval was granted at the Scheme Meeting on June 12, 2024, and received Court approval on June 14, 2024.

Under the approved Scheme, CRH will purchase the remaining 57% of Adbri’s ordinary shares not held by Barro for A$3.20 per share in cash.

In December 2023, the company, along with the Barro Group, disclosed a deal to acquire Adbri at an equity valuation of $1.4 billion (A$2.1 billion) on a 100% basis

The deal values the 53% of issued share capital that Partners Barro and CRH do not currently have an interest in and which CRH has agreed to acquire at $0.75 billion (A$1.1 billion).

With Foreign Investment Review Board (FIRB) approval already secured, all conditions for the transaction have now been satisfied. The deal is projected to close on July 1, 2024, based on the current timetable.

Albert Manifold, Chief Executive of CRH, said, “Adbri is an attractive business with high-quality assets and leading market positions that complement our core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for our existing Australian business.”

CRH ended first-quarter FY24 with cash and equivalents of $3.3 billion and $3.8 billion of undrawn committed facilities available until May 2029.

Investors can gain exposure to the stock via Invesco Building & Construction ETF PKB and Fidelity MSCI Materials Index ETF FMAT.

Price Action: CRH shares are down 2.03% at $77.60 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesLarge CapM&ANewsAI GeneratedBriefsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!