An Irish twist to the PPC saga

CRH IS AMONG companies considering a counterbid for PPC that could trump an offer by Canada’s Fairfax Financial Holdings, according to people familiar with the matter, adding a potential new twist to the battle for South Africa’s largest cement maker. The Irish buildingmaterials supplier has held early deliberations about pursuing an acquisition of the Johannesburg- based company, said the people, who asked not to be identified as the plans aren’t public. A final decision hasn’t been made and the company may decide against an offer in favour of US acquisitions, the people said. PPC has a market value of R11 billion. In common with most South African deals, issues yet to be settled include how the Dublin-based company would address the requirement of a black economic empowerment deal, a way to comply with government initiatives to redistribute wealth to those discriminated against during apartheid, one of the people said. The takeover would also likely require support from state-owned Public Investment Corporation, Africa’s biggest money manager and a top shareholder in PPC. Spokespeople for CRH and PPC declined to comment. PPC’s future as an independent company has been clouded for months after talks about a tieup with rival AfriSam Group failed and Toronto-based insurer Fairfax made a partial offer for R2bn of PPC stock at R5.75 a share. – Bloomberg