Future of Merckle’s estate is uncertain

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Merckle committed suicide on Monday as his fortune fell due to bad stock exchange bets.

The future for Heidelberg, worth 13 billion (£11.70 billion) when it took over Hanson in 2007, is uncertain.

Merckle financed the Hanson deal by debt, giving Heidelberg the highest leverage of any company in the sector at nearly six times earnings.

With construction rapidly slowing, the company may struggle to meet short-term debt commitments and to roll-over 1.3 billion this year and 5.5 billion next.

Heidelberg is now valued at around 3.9 billion but has credit default swaps pricing in risks of an imminent default.

That risk has soared as cashflow is squeezed with the US cement market shrinking some 10% in 2008.

Heidelberg is also hampered from seeking new shareholder cash as 80% of the firm is owned by Merckle companies.

Analysts say a trade sale is unlikely as Heidelberg's rivals are also being squeezed.