Global building materials solutions provider CRH has reached a binding agreement to acquire Australia-listed concrete manufacturer Adbri.

The deal, which involves a partnership with Barro Group, is set to delist Adbri from the Australian Securities Exchange (ASX). Barro currently owns an approximately 43% stake in Adbri.

CRH, which currently holds a 4.6% interest in Adbri through a cash-settled derivative, will end up with a total of 57% of Adbri.

Around 53% of issued share capital that CRH agreed to acquire is valued at A$1.1bn ($0.72bn).

This agreement follows a two-month due diligence process and is based on a cash consideration of A$3.20 per share, valuing Adbri at an equity valuation of A$2.1bn on a 100% basis.

The independent directors of Adbri's board have formed a committee and unanimously recommended that shareholders vote in favour of the scheme, provided there is no superior proposal, and an independent expert deems the scheme beneficial for Adbri shareholders.

Subject to standard terms and conditions as detailed in the scheme implementation deed, the transaction is anticipated to be completed this year.

CRH CEO Albert Manifold said: “We are pleased to reach this important milestone in the potential acquisition of Adbri in partnership with the Barro family.

“Adbri is an attractive business with high-quality assets and leading market positions that complement our core competencies in cement, concrete and aggregates while creating additional opportunities for growth and development for our existing Australian business."

The deal comes a day after Saint-Gobain agreed to acquire all the outstanding shares of CSR, through an Australian scheme of arrangement for A$9 per share.