Aggregate Industries Plc, a key player in the U.K. and U.S. aggregates, ready mixed, and asphalt markets, has accepted a takeover offer from Swiss giant Holcim Ltd. The proposed $3.4 billion transaction would mark the return of Holcim (US) Inc. to ready mixed production and continue a shuffling of the industry's top 10 operators. The companies announced a tentative deal on Jan. 11, with a formal offer nine days later. Holcim Ltd. is presently the world's number two player in cement, behind Lafarge Group; through Holcim (US), St. Lawrence Cement and Apasco investments, the company is the number three cement producer in North America. Integrated St. Lawrence and Apasco operations also give Holcim Ltd. a top-five position for ready mixed in Canada and Mexico.

Holcim's bid for Aggregate Industries follows another major transaction, the $5.8 billion takeover of London-based RMC Group by Mexico's Cemex S.A., which is projected to close in February and sure to impact U.K., U.S. and other construction materials markets around the globe. In the U.S., Aggregate Industries cites number seven and eight positions in aggregate and ready mixed production, with additional concrete masonry and asphalt businesses. The company has six regions, five in cold-weather markets serving second-tier population centers and some rural markets. The sixth and newest region is based in Las Vegas. With 17 mill and grinding operations and more than 60 terminals, Holcim (US) and St. Lawrence have cement and slag production and distribution strategic to all regions.

Aggregate Industries properties, with about 7 million-yd. annual production, will position Holcim (US) as the industry's seventh largest ready mixed producer, a ranking that assumes a combined Cemex and RMC. The Holcim takeover would mark the sixth time since 2000 where a leading (> 5 million yd.) U.S. ready mixed player changed hands, owing to these other mergers and transactions: Hanson-Pioneer; Cemex-Southdown; Lafarge-Blue Circle; and Hanson/Texas-Texas Growth Management.