updated 10/27/2006 9:57:34 AM ET 2006-10-27T13:57:34

Mexican cement manufacturer Cemex SAB de CV said Friday it will offer about $11.7 billion in cash for Australian heavy building materials maker Rinker Group Ltd.

Cemex said the deal would create one of the world’s biggest building materials companies with revenue of $23.2 billion and more than 67,000 employees in more than 50 countries.

Cemex said it planned to offer $65.00 in cash for every American depository receipt, a 22 percent premium over the stock’s closing price of $53.40 on Thursday on the New York Stock Exchange.

The Mexican company would also assume about $1.1 billion in Rinker debt in the deal.

Cemex said it expects an acquisition to immediately add to earnings per share with $130 million in pretax savings by the third year following the deal.

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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