Monday, May 07, 2007

Hanson a target?


HeidelbergCement AG, Germany's biggest cement maker, said it may offer to buy Hanson Plc, one of the world's largest suppliers of crushed stone. Hanson stock surged 20 percent, giving a market value $14.6 billion. "HeidelbergCement is currently reviewing its options with respect to its interest in Hanson, including the possibility of seeking to acquire the company,'' the Heidelberg, Germany-based company said in a statement. What would HeidelbergCement stand to gain? Acquiring Hanson would boost the company's revenue by more than two-thirds, add operations in Australia and bolster its range of products such as crushed rock, concrete pipes and bricks. The German company, which gets about half its sales from cement, has already expanded in Asia and eastern Europe to counter a decade-long construction slump at home. The deal makes sense on paper, but is it do-able? Some experts says it's possible, some say it's all talk. Your comment?

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