IMD-3-1884 © 2008
Marchand, Donald A.; Leger, Katarina
On September 28, 2004, just a few months succeeding the conclusion of a 4 year best practice sharing and standardization effort called the "Cemex Way" and intro of a brand-new governance design, CEMEX revealed its intent to obtain UK-based Ready Mix Concrete (RMC) group for US$ 5.8 billion. RMC was a business over half CEMEX's size, with an enormously decentralized culture and running design, spread out throughout Europe, the United States, the Middle East, Asia-Pacific and Latin America. CEMEX understood that the post-merger integration (PMI) would be extremely tough which it would need to adjust its brand-new governance structure and company operating design to this brand-new truth.
With synergies from the RMC integration still to be understood and numerous nations still to be incorporated to the CEMEX Way, CEMEX made an unsolicited offer to purchase the Rinker Group Ltd, a Sydney-based maker of ready-mix concrete, aggregates and cement with operations in Australia and the United States, for $14.2 billion-- CEMEX's biggest acquisition to date! Conversations in the case revolve around how CEMEX could handle the PMI of both RMC and Rinker to date market expectations of "expense synergies" and still grow its leading line?
Subjects: Profitable growth; Post merger integration; Best practice sharing; Standardization and flexibility business; Process evolution; Information technology; Information use; Business process innovation; Governance
Settings: South America; North America; Europe; Middle East; Asia; Australia; Cement, aggregates, and ready-mix concrete; 2007 net sales of $21.7 billion; 67,000 employees; 2004-2007
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