RMC may enter pounds 1bn bid battle for Scancem
Thursday 25 February 1999
Industry sources said RMC's interest in the Swedish group would trigger a fierce bid war with several European rivals, including CRH, the Irish building materials giant, and France's Lafarge, Europe's largest maker of construction products.
The companies declined to comment last night but insiders said that the three groups are set to table an indicative offer for Scancem before tomorrow's deadline. City analysts said the initial bids would be pitched at around pounds 1bn, in line with the group's market value on the Stockholm stock exchange.
Scancem, which is jointly owned by Skansa, the Swedish construction giant, and the Norwegian conglomerate Aker, is a prized asset in Europe's fiercely- competitive building materials market.
The Stockholm-based group is one of Europe's leading cement producers with a dominant market share in the Nordic countries and operations across the globe. Last year it had sales of more than 17.56bn Swedish Kronas (pounds 1.35bn) and profits of over pounds 150m.
Skansa and Aker put the company on sale at the end of last year after European Union anti-trust authorities called for a break-up of the group to reduce its share of the Scandinavian cement market.
The two owners,which control over 90 per cent of the voting rights in Scancem, have still not decided whether to sell the group as a whole or to dispose of its components separately.
The second option would increase the likelihood of a bid by RMC and CRH for Castle Cement, one of Scancem's crown jewels. The UK company commands a 25 per cent slice of Britain's cement market, the second largest after Blue Circle's 45 per cent but ahead of Rugby's 20 per cent. Castle is currently undergoing a pounds 50m modernisation programme to upgrade its plants and reduce costs.
Analysts said a victory by RMC could dramatically change the structure of the UK market as it would create a "one-stop materials shop" offering anything from aggregates, used in roadbuilding and houses, to cement, used in heavy civil engineering projects.
- 1 Malaysian cyclist could face disciplinary action after 'Save Gaza' gloves protest
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 Fifty Shades of Grey trailer provokes moral outrage from US parenting groups
- 4 McDonald’s removes chicken nuggets from the menu in Hong Kong amid major food scare
- 5 Students offered grants if they tweet pro-Israeli propaganda
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
John Barrowman praised for Commonwealth Games opening ceremony gay kiss
iJobs Money & Business
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...