Speculation over cement takeovers

There was further speculation about consolidation in the materials industry last week when it emerged that Castle Cement could have a new owner. A bid has been made for Castle Cement's parent, Heidelberg Cement, by finance firm Spohn Cement.
Spohn, run by the Merckle family, owns 12.8% of the shares in Heidelberg Cement. Castle has an output of 3m tonnes a year, one-quarter of the UK market.
Speculation about other possible takeovers followed the Spohn bid, with Hanson in the spotlight and Lafarge as a possible suitor.
However, an industry source scotched the rumours, and said a merger between the two companies would invoke competition issues concerning their aggregates businesses, and questioned the appeal of Hanson's building products division to Lafarge.
Both companies have remained tight-lipped on the rumours.