Cemex Chairman Lorenzo Zambrano informed Rinker Group shareholders in a Jan. 23 letter his company is extending its offer period for their shares through March 30, a move that figures to allow U.S. and Australian regulators additional time to review a takeover Cemex proposed in late October. The letter reiterated the original tender offer, equivalent to $65 per Rinker American depository receipt (representing five Rinker Australian Stock Exchange-traded shares). The ADR have remained in the $70-$72 range since Cemex effected the bid, and Rinker board members appear to be holding firm on their recommendation that shareholders reject the offer as too low.

Due to overlap of ready mixed and aggregate businesses in Florida and Arizona, a prospective Cemex-Rinker Materials combination invites potentially greater Federal Trade Commission scrutiny than Cemex's most recent U.S. deal, which encompassed the Sun Belt-spanning concrete, aggregate and cement operations of RMC USA Inc. Its takeover with the remaining London-based RMC Group was consummated after about six months of review by domestic and foreign regulators.