CSR Limited today welcomed theACCC’s approval of the merger of Australian Cement Holdings (ACH) - CSR’s 50-50cement joint venture with Hanson PLC – and Queensland Cement Ltd (QCL), to form Australia’s largest cement group.

The new group - which is stillto be named - will be an Australian company, owned 50% by Holcim (QCL’s parentcompany) and 25% each by CSR and Hanson. Annual turnover will be over $700 million, with cement production around three million tonnes, from three principal plants – Gladstone, in Queensland(currently a QCL plant), Railton in Tasmania (ACH) and Kandos in New SouthWales (ACH).

The ACCC approval of the merger will enable the three companies to better utilise existing cement capacity,with resultant cost savings in logistics and corporate overheads.

The new group will have a comprehensive network of plants and terminals capable of providing betterservice to a wider group of customers in the eastern states. It is also expected to be able to compete more effectively in a very competitive international market.

The three companies are currently progressing their due diligence and the necessary documentation forthe merger.