26 January 2015
KKR expresses interest in Lafarge Tarmac sale with CRH 26 January 2015
UK: An American private equity firm, KKR, is in talks to buy a stake in one of Britain's biggest building materials companies. KKR is understood to have teamed up with CRH. Together, they will bid for Euro6bn of assets put up for sale by Holcim and Lafarge.
CRH is in a strong position to win the race for the LafargeHolcim assets, although it is likely to be hit by regional competition issues if it is successful. As a result, it is said to have held discussions with KKR about an agreement that would see the private equity firm take control of some divisions of Holcim and Lafarge to assuage regulatory concerns.
Insiders have said that KKR has shown particular interest in the British assets of LafargeHolcim, which include Lafarge Tarmac, allegedly worth Euro2.27bn.
LSR completes cement plant divestment to Eurocement 26 January 2015
Russia: LSR Group has completed the sale of its cement plant in Slantsy, Leningrad to Eurocement. Following the closure of the deal, Eurocement has acquired full operating control over the facility. The plant, which began operations in September 2010, operates a 5000t/day clinker line and a 1.86Mt/yr cement line.
LSR reiterated that the divestment is part of its strategy of focusing on projects 'with the highest returns on invested capital and the fast-growing real estate development business.' As a result, LSR has significantly reduced its debt and made it 100% Ruble-based.
Qatari investors plan US$500m cement plant in Ethiopia 26 January 2015
Ethiopia: A Qatari business group plans to invest US$500m in Ethiopia. The group met with Ethiopia's president to discuss their investment plans, which include a cement plant in Dire Dawa, as well as other industrial facilities. No specifics have been announced as to the capacity of the cement plant.
Ecuador: Cementera Nacional (33.5%) has formalised a strategic partnership with Cementos Yura (63.5%) to expand its installed production capacity for cement and clinker at the Riobamba cement plant. The US$230m investment project will extend over the next 40 months. Ecuador presently imports more than 1Mt/yr of clinker. The expanded Riobamba plant will have a 2400t/day of clinker production capacity, allowing foreign exchange savings of US$75m.