CEMEX's Acquisition Strategy - The Acquisition of Rinker Group

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR376
Case Length : 29 Pages
Period : 2005-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : CEMEX S.A.B de C.V
Industry : Cement
Countries : Mexico, Australia

To download CEMEX's Acquisition Strategy - The Acquisition of Rinker Group case study (Case Code: BSTR376) click on the button below, and select the case from the list of available cases:

Price:

For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies

Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

Excerpts

Background Note

CEMEX had its roots in a cement company called Cementos Hidalgo which was founded way back to 1906 in Monterrey, Northern Mexico. Cementos Hidalgo had a production capacity of 5,000 metric tons (MT) of cement per annum.

In 1920, Lorenzo Zambrano established Cementos Portland Monterrey with a production capacity of 20,000 MT of cement per annum near Monterrey.

In 1931, Cementos Hidalgo and Cementos Portland Monterrey merged to form Cementos Mexicanos.

The Acquisition Integration Process

CEMEX had learnt in the course of its business that implementing the technical and management standards it followed in its existing plants was not sufficient to ensure the smooth integration of an acquired company. The company realized that it had to learn the processes already implemented in the acquired company, compare it with the corresponding processes it followed, and retain the better of the two...

Acquisition of Rinker

On October 30, 2006, CEMEX made an offer to buy all issued and outstanding shares of Rinker for US$ 12.8 billion. The offer was at a 27% premium over Rinker's share closing price as on October 27, 2006, and at a 26.2% premium over Rinker's three-month volume weighted average price...

Excerpts Contd...>>

Case Studies in Business Strategy Volume VI

Case Study Volumes Collection

Business Strategy
Workbooks Collection