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MONTERREY - Mexico's Cemex, the world's No 3 cement maker, won shareholder approval on Thursday for its US$12 billion ($17.4 billion) hostile takeover bid for Australian building materials firm Rinker Group Ltd.
As expected, shareholders voted to give the go-ahead for the unsolicited bid for Rinker, which had been proposed by Cemex's board.
Rinker is fighting the takeover and has rejected the offer on grounds its price is "far too low."
A takeover by Cemex would create the world's biggest ready-mix concrete and aggregates firm, although it would still lag France's Lafarge and Swiss-based Holcim in cement.
"We believe the acquisition of Rinker is a very, good option for us because it fulfils all the investment criteria that we have applied successfully in the past," Cemex's Chairman and Chief Executive Lorenzo Zambrano told shareholders.
Cemex, which operates in more than 50 countries, is the top cement maker in the United States, its leading market in terms of sales.
The United States accounts for 80 per cent of Rinker revenues. It also has operations in China and Australia.
Refusing to increase its offer, Cemex said on Monday its US$13 bid for Rinker was "full and fair" and that an independent valuation comissioned by Rinker was too high.
That valuation priced Rinker at A$20.58 and A$23.04, or about 25 per cent to 40 per cent higher than Cemex's offer.
- REUTERS
