Adbri takeover passes major regulatory hurdle
The $2 billion takeover of Adelaide-based Adbri has passed a regulatory milestone, bringing the acquisition one step closer to completion.
The takeover of an Adelaide cement company has passed a regulation milestone. Photo: Adbri.
The Foreign Investment Review Board (FIRB) has confirmed it has no objection to a takeover of South Australian cement giant Adbri by a consortium of major building materials businesses.
Dublin-based CRH’s Australian subsidiary and Victorian building materials firm Barro Group formalised their $2.1 billion bid to buy Adbri in February, including a plum 41 per cent premium for shareholders.
Barro Group is Adbri’s largest shareholder at 42.7 per cent, and two of Adbri’s directors are Barro family members – including Adbri chair Raymond Barro.
FIRB approval was required because of the international ownership of CRH’s Australian arm, which received written confirmation from the board that the Commonwealth Government had no objection to the deal.
The takeover deal still requires Adbri shareholder approval at a scheme meeting to be held on June 12 in Adelaide.
Adbri board members unanimously recommended shareholders accept the offer under which the consortium of building supplies firms would acquire all shares not currently owned by Barro group.
