Trade players circle building materials biz BGC; offers next week

Highlights of the auction include Adbri, its larger listed counterpart, which has already declared its interest to shareholders, and listed commercial player CSR, which with a market capitalization of $2.2 billion exceeds Adbri.

It’s hard to completely rule out Boral given that it’s the heavyweight in the industry and the ties between it and BGC. But Boral shareholders would like to think the Seven Group-controlled company has better ideas than buying Midland Brick, which is sold to BGC in 2019.

Finally, there are a bunch of foreign business players who have been threatening to get big in the Australian building materials market for years.

Topping the list is Irish building materials supplier CRH, a perennial tire shooter in the local market, sniffing out assets even when they weren’t even for sale.

The price is the cement business of BGC Group, which has a 47% market share in WA.

But over its 60-year history, the company has built a collection of other units ranging from bulk haulage services in the Perth metropolitan area to asphalt production.

MacCap handled the sale on behalf of the estate of late BGC founder Len Buckeridge.

The Tyrekickers believe the estate is after a global sale of the business, instead of a split, and a deal done this year if possible.

BGC was shopped with $1 billion in revenue and $100 million in earnings before interest, taxes, depreciation and amortization.

The price is expected to be around $1 billion, but it wouldn’t be surprising to see pairings of bidders trying to split the bill for the BGC units they want.