Cemex SA, the world's third-largest cement producer, agreed to buy Rinker Group Ltd. for $14.2 billion after raising its offer, to increase market share in the three fastest-growing U.S. states.

Cemex SA, the world's third-largest cement producer, agreed to buy Rinker Group Ltd. for $14.2 billion after raising its offer, to increase market share in the three fastest-growing U.S. states.

Cemex increased its bid 22 percent to $15.85 cash a share, Sydney-based Rinker said in a statement. The offer values Rinker at $15.3 billion, including debt, making it the largest foreign takeover of an Australian company.

The acquisition will boost Cemex's annual sales to almost $24 billion from $18.2 billion and widen its lead in the U.S. cement market. Rinker gets more than 80 percent of its sales in the U.S., where it focuses on Florida, Arizona and Nevada, which according to the Census Bureau will be the nation's fastest- growing states in the next 25 years.

The deal ends a five-month takeover battle after Rinker rejected the initial offer as too low. Investors held out for a higher offer, arguing a housing slump in the U.S. is temporary and that Rinker is well placed to benefit because of its position in the growth states.

To read more about this story, go to Bloomberg.com

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