Product details

CEMEX of Mexico closed its acquisition of The Rinker Groups of Australia in April 2007 after raising its offer to USD15.85 per share. This represented a 54% premium over Rinker's closing price prior to the initiation of the hostile offer. CEMEX, in-line with its customary acquisition process, financed the entire purchase with debt. But within a year CEMEX was struggling to service its sizeable outstanding debt as business conditions and financial results declined with the financial crisis of 2008. The company was facing debt service of USD5.5 billion in 2009, money which it did not have. CEMEX would need to propose a strong and convincing financial restructuring plan to its creditors if it wished to survive.