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CRH confirms ‘binding agreement’ with AdBri

CRH has confirmed a scheme implementation deal with Australian materials producer AdBri, which will see them potentially take control of the company. 

AdBri’s committee which looked over the proposal unanimously recommended the shareholders vote in favour of CRH’s proposal after concluding it was in their “best interests”. 

Under the deal, CRH will take over the remaining 57 per cent of AdBri shares not owned by Barro Group for a cash consideration of $3.20 per share.  

“We are pleased to reach this important milestone in the potential acquisition of Adbri in partnership with the Barro family,” CRH chief executive Albert Manifold 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.  

“We look forward to working with the Barro family over the coming years to enhance the long-term growth and performance of Adbri.” 

The Barro Group nominee directors have recused themselves from the Adbri Board and all board sub-committees, and an Independent Board Committee (IBC) while the proposal was considered. 

CRH’s proposal values Adbri at an equity valuation of A$2.1 billion (US$1.4 billion) on a 100 per cent basis and values the approximately 53 per cent of issued share capital that the partners do not currently have an interest in and which CRH has agreed to acquire at A$1.1 billion.  

The proposal came to light last year as CRH announced it had partnered with Barro to potentially takeover AdBri subject to due diligence and shareholder support. The deal remains subject to regulatory and customary conditions.  

According to CRH, the transaction is estimated to be completed in 2024, with some reports suggesting it could be done by June.  

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