Irish Readymix ends takeover talks
Published: 29 March, 2011
DUBLIN: The loss making Irish concrete company Readymix has ended tentative takeover talks with unnamed suitors, after a firm offer failed to materialise.
Last October, Readymix, which is controlled by Mexico-based building materials firm Cemex, said it had received approaches that could lead to an offer for the company. However although discussions did take place, no "firm and fully financed" offer was received by Readymix, the company said yesterday.
Analysts said the announcement came as no surprise to the market. "The potential for a successful offer being forthcoming from a third party was always going to be difficult," said Bloxham analyst Pauric Quinn.
"Potential interested parties would be acquiring a loss-making business that operates in a fiercely competitive market which has excess capacity in place and is competing against a number of well resourced and strongly positioned competitors including CRH."
Getting finance for such a deal would be very difficult, MRQuinn said.
Readymix also said that trading remained difficult in the Irish construction industry, and that it was continuing to focus on cash-management and cost-minimisation. It has operations in Ireland and the Isle of Man.
In a trading statement in January, Readymix, which has a market capitalisation of about €21m, said it expected an operating loss of about €15m for 2010.