Cemex Bids for Rinker

Cemex (CX Quote - Cramer on CX - Stock Picks) bid $12.8 billion for Australia's Rinker (RIN Quote - Cramer on RIN - Stock Picks) in a deal that would create a cement titan.

The Monterrey, Mexico, mixer said it will pay $13 a share in cash for Rinker shares, marking a 27% premium to their Thursday close in Australia.

The combination of Cemex and Rinker will create one of the world's largest and most profitable building materials companies with pro forma revenues of $23.2 billion and more than 67,000 employees in more than 50 countries.

Cemex expects to achieve approximately $130 million pretax of annual cost synergies by the third year following the acquisition of Rinker, primarily from the sharing of best practices and the implementation of Cemex's standardized business processes throughout the combined company.

Cemex said it has obtained committed facilities, sufficient to satisfy in full the cash consideration payable to Rinker shareholders under the terms of the offer.