Adbri: Takeover Offer From CRH and Barro Group Represents a Massive Premium for Shareholders

Narrow-moat CRH and Barro Group have made a nonbinding indicative proposal to acquire all Adbri shares that the two firms do not already own. The cash offer in the form of AUD 3.20 per share implies a 41% premium to Adbri’s closing price on Dec. 15, 2023, and a 60% premium to our stand-alone fair value estimate of AUD 2.00 per share. CRH is the largest producer of aggregates and asphalt in the United States and also has operations in Europe. It does not currently have any significant businesses in Australia.