CRH PLC (LON:CRH) saw its shares fall today after US cement maker Ash Grove Cement Co said it had received a takeover proposal valued at up to US$3.8bn, topping an earlier offer from the Irish building materials firm.
In early morning trading, shares in FTSE 100-listed CRH – which last month said it had agreed to buy Ash Grove for US$3.5bn - were down 1.6%, or 44p at 2,766p.
In a statement on its website, privately-owned Ash Grove said the new bid, from an unnamed party, was valued at US$3.7bn-US$3.8bn and was expected to result in a superior offer.
Ash Grove said it has set a meeting on November 1 for shareholders to vote on the agreement with CRH and has extended the period during which it can look for other potential buyers to October 20.
Responding to the rival offer, CRH said its proposal remains in place, subject to the approval from Ash Grove shareholders.
Kansas-headquartered Ash Grove - the fifth largest cement manufacturer in the US - operates eight cement plants across eight states, combined with extensive ready mixed concrete, aggregates and associated logistics assets across the US Midwest.
CRH, which is already North America's biggest maker of concrete products and second largest supplier of aggregate materials for construction, said it wanted to acquire Ash Grove to add extensive ready-mixed concrete, aggregates and logistics assets.