Hanson in HK concrete merger

BUILDING materials group Hanson has teamed up with Asian billionaire Li Ka-shing in a move that would see the merged operations dominate the booming Hong Kong concrete market.

The union of the companies' concrete and quarrying operations comes as Hong Kong's construction and property markets are rallying after years.

It would also have ramifications beyond the territory, offering Hanson a partnership with one of the region's most influential businessmen, with extensive interests in mainland China.

Li, often dubbed 'Superman' by local media for his investing acumen, has commercial interests that span the globe and he has impeccable connections with the leadership in fast-growing China.

The deal is expected to close in the second-quarter and will see Hanson's Hong Kong unit merged with Anderson Asia, a division of Li's blue-chip Cheung Kong Infrastructure (CKI) group.

Lambert Leung, chief executive officer of CKI's materials arm, said: 'The challenges in Hong Kong's property and construction markets have affected the price and volume of infrastructure materials in recent years.

'The merger, which consolidates the aggregate and concrete operations of Anderson and Hanson in Hong Kong, will maximise efficiency in our production.'

No financial details of the pact were disclosed, but the two sides will each appoint three directors to the board of the merged group, with CKI's Leung as chairman.