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U.S. Will Require Cemex to Sell Assets Sales for Rinker Deal

The U.S. Justice Department said on Wednesday it would require Mexico's Cemex, the world's No. 3 cement maker, to sell 39 U.S. facilities if successful in a bid for Australian building materials maker Rinker Group.

Without the divestitures, prices would likely increase for ready mix concrete, concrete block and aggregate sold to customers handling large building and Transportation Department projects, the Justice Department said.

Cemex , the largest cement maker in the United States, would have to sell the facilities in Arizona and Florida, the Justice Department said in a statement.

Rinker makes around 85% of its earnings in the United States.

In late March, Cemex extended its $12 billion hostile takeover bid for Rinker for a third time following low investor acceptance of its bid.

Monterrey-based Cemex, which operates in more than 50 countries, has offered the equivalent of A$16.51 a share for Rinker, whose board has recommended shareholders reject the bid.

Australian analysts say Cemex would need to offer above A$21 a share for a successful takeover bid, which would be the biggest offer ever by a Mexican company, though Mexican analysts have said Cemex is unlikely to raise its bid.

Rinker's stock closed April 4 at A$18.07 a share.