Britain's largest cement maker Blue Circle Industries Plc is considering a cash takeover offer from Lafarge SA which would make the French group the biggest cement producer in the world. Lafarge has tabled an offer which values Blue Circle's equity at £3.1 billion sterling, according to industry sources. Neither group would provide details about the deal which would also see Lafarge take on Blue Circle's debt.

Sources said Blue Circle's board was scheduled to meet yesterday afternoon and was keen to reach an agreed deal which could be announced this week, possibly as early as today.