Germany's largest cement maker HeidelbergCement AG on Tuesday announced that it will pay about 16 billion U.S. dollars to buy Hanson PLC of Britain, one of the world's largest suppliers of heavy building materials to the construction industry.

A statement of the two companies said HeidelbergCement will pay 11 pounds a share for London-based Hanson.

The takeover, whose terms were agreed upon by the boards of the two companies, is expected to be completed in the third quater of 2007 pending approval by competition authorties.

"We are delighted that Hanson has agreed to recommend our proposed offer," said HeidelbergCement chief executive Bernd Scheifele in the statement. "It is a defining moment for HeidelbergCement and its shareholders, and is consistent with our focus on strategic expansion into complementary geographies, across diversified products and customer markets."

The deal will create the world's second-largest company in the sector.

Source: Xinhua