Surplus Spurns Merger Creating Largest Cement Maker

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April 7 (Bloomberg) -- Bloomberg’s Manus Cranny and Matthew Campbell report on current M&A activity and outlook. They speak on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

National bank chief speaking to us exclusively.

It is busy on monday.

Manus cranny and our reporter.

Let us take it up with you.

I would not say that yet.

We are getting there.

We were sitting here 2-3 weeks ago and saying that the deal was over and it was not.

There was another eating war that has come -- bidding war that has come to an end.

It was on the order of $23 billion and it is a lot more than it.

The competing bidder put out a statement over the weekend that said that they thought their offer was better.

We do not see any other choice.

We have the largest cement maker.

They are in the make.

This is in two different drivers.

One is the debt levels.

You have a junk rated company and you have a company that is committed.

You have hurdle upon hurdle.

You have the billionaire shareholders driving it.

The billionaire shareholders are a bit of a player.

He is stuck here.

Again, the billionaires are driving this.

Is it really a merger of equals?

I have never worked in a company where there is a merger of equals.

The companies will get together and fight to the bone with regulators to get the deal done.

Is this good for growth?

This is a philosophical question about m&a. cement is interesting.

I have had to learn about it.

A building landscape has slowed down a lot since the financial crisis.

If you buy the companies, they can consolidate and close some of the kilbnns.

They will have to do with government where they operate.

You hope that the economy rebounds.

That is the idea.

The execution is going to be a challenge, of course.

This is where you are going to see it.

They are already deep.

They are already under investigation for price-fixing.

They are not exactly talking them at the moment.

They have control virtually in morocco and the philippines.

What is interesting for me is the other billionaire who owns it.

He is just sitting there and may eventually sell it to them.

What is causing the biggest hurdles?

They still have not signed off on it?

China takes a long time.

Whether they approved or not, it is slow.

Europe will be the big challenge . that is where the combined market shares are the greatest and is a potential opportunity for competitors.

They are the largest players in the american and very weak in europe.

If you take the view that four or five -- this is the other point that his story made.

It is the linchpin of this deal.

Because, if you're forced to sell assets, the feeding frenzy is the word that is used.

You are forced to sell the assets.

Are you fire selling?

Do you get good value?

Does the deal probable on that?

There is a lot of issues that play.

What is going to experience the most consolidation?

It is my bias.

I have to go with telecoms.

I think it is fairly objective.

We have seen some gigantic deals

This text has been automatically generated. It may not be 100% accurate.

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