£8bn offered for Hanson

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Germany’s HeidelbergCement has reached an agreement with the board of directors of Hanson for a proposed £8bn takeover the British building materials company.


has reached agreement with


for the acquisition of the entire issued and to be issued share capital of Hanson at a price of 1100p in cash for each Hanson share.

The board of directors of Hanson intends to recommend Hanson shareholders to accept the £8bn offer.

HeidelbergCement is one of the leading producers of building materials worldwide, with its core products being cement, ready-mixed concrete and concrete products, aggregates, building materials and related activities. The company employs around 46,000 people in more than 50 countries and generated revenues in excess of €9bn in 2006.

Hanson is one of the world’s largest suppliers of heavy building materials to the construction industry, with turnover in 2006 of £4.1bn. Its products fall into two categories: aggregates and building products. Hanson employs approximately 26,000 people, operating primarily in North America, the UK and Australia with further operations in Asia Pacific and Continental Europe.

The combined group would be the second largest in its industry, on a worldwide basis, by proforma market capitalisation.

The acquisition will be made by Lehigh, a wholly-owned subsidiary of HeidelbergCement, and is proposed to be implemented by way of a scheme of arrangement under section 425 of the Companies Act 1985. The scheme will be conditional upon the requisite approval of Hanson’s shareholders and the English Courts. The acquisition will also be conditional upon the satisfaction or waiver of European, Canadian and US competition authority clearance.

HeidelbergCement currently anticipates that the transaction will be completed in the third quarter of 2007.