Ireland's CRH withdraws from bidding for South African cement maker PPC (updated)

Helios Fairfax Partners

07/12/2017 08:08

(Adds details, shares) 
    Dec 7 (Reuters) - Irish cement producer CRH  CRH.I , the 
world's third-largest building materials supplier by market 
value, had decided not to bid for rival PPC  PPCJ.J  the South 
African company said on Thursday. 
    Last month, CRH made an undisclosed cash bid for PPC and had 
been given time for due diligence and to submit an updated bid. 
    "CRH has decided not to submit an updated expression of 
interest and therefore considers it appropriate to withdraw from 
the Independent Board's process," PPC said in a statement. 
    PPC last month turned its back on a takeover attempt by 
AfriSam  AFRSMV.UL , backed by Canada's Fairfax Africa 
 FAHu.TO . However, regulations allow Fairfax until Dec. 12 to 
post its partial offer circular.  urn:newsml:reuters.com:*:nL8N1NJ40I  urn:newsml:reuters.com:*:nL8N1NS3EC 
 urn:newsml:reuters.com:*:nJseG0006a  
    PCC, which has been a consolidation target on-and-off for 
several years, said it was still talking to Swiss company 
LafargeHolcim  LHN.S .  
    CRH said in August it had around 5 billion euros ($5.90 
billion) in cash to spend on M&A over the next 18-24 months. It 
has committed 3 billion euros of that to buying Ash Grove Cement 
Co  ASHG.PK .  urn:newsml:reuters.com:*:nL8N1LA1ES 
    Dublin-based CRH did not respond to a request for immediate 
comment.  
    Shares in PPC, which has a market capitalisation of 11.02 
billion rand ($812 million) and had net debt of 4.4 billion rand 
at the end of September, were down 4.21 percent at 6.60 rand by 
0755 GMT. CRH's stock was up 1 percent at 39.60 euros.  
    PPC last month reported a 36 percent rise in half-year 
earnings, helped by robust performance in Zimbabwe and Rwanda. 
 urn:newsml:reuters.com:*:nL8N1NT0M4 
    ($1 = 0.8480 euros) 
    ($1 = 13.5766 rand) 
 
 (Reporting by Noor Zainab Hussain in Bengaluru; editing by 
Jason Neely) 
 ((noor.hussain@thomsonreuters.com; Within UK +44 20 7542 1810; 
Outside UK +91 80 6749 2764; Reuters Messaging: 
noor.hussain.thomsonreuters.com@reuters.net)) 
 
Keywords: PPC M&A/CRH