Irish building materials giant CRH takes control of Australia's Adbri in £1.1bn deal

Irish building materials giant CRH is set to take control of Australian concrete maker Adbri in a deal that values the Sydney listed company at Euros1.3 billion (£1.1 billion)

CRH has teamed up with a local family owned business Barro, which already controls 43% of Adbri. CRH, which already has a 4.6% interest in Adbri through derivatives, will end up with a 57% holding under the takeover plan.

Adbri, previously known as Adelaide Brighton is one of Australia's biggest building materials firms and has more than 200 plants and facilities across the country. Its origins date back to a cement works in South Australia founded in 1882. The A$3.20 a share offer , sent Adbri shares soaring 32 per cent higher to a 19 month high of almost $3 on the . The offer price is a 41 per cent premium to the previous closing level on Friday. CRH chief executive Albert Manifold, said: “We have held a long-term interest in the Australian construction materials market, which has attractive attributes including stable market dynamics and positive growth prospects, similar in nature to the southern United States and central and eastern Europe where we have a significant presence.

“Adbri is an attractive business with quality assets that complement our core competencies in cement, concrete and aggregates. With its leading market positions in Australia, we are delighted that this opportunity has presented itself to us. It is the next logical step for CRH to expand our existing presence in Australia, where we have been operating for 15 years.