02 February 2015
Holcim and Lafarge announce assets sale to CRH 02 February 2015
World: Lafarge and Holcim have entered exclusive negotiations to sell a number of assets to Ireland's CRH for Euro6.5bn as part of their planned merger. The assets include operations in Europe, Canada, Brazil and the Philippines. The combined assets, which include Lafarge Tarmac in the UK, generated Euro5.2bn of sales in 2014, with estimated 2014 operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of Euro744m.
"The projected transaction is a key step towards the creation of LafargeHolcim and the value offered reflects the strong quality of the selected assets. With this announcement, we remain firmly on track to complete our proposed merger in the first half of 2015," said Wolfgang Reitzle, designated chairman of the Board of Directors of LafargeHolcim and Bruno Lafont, designated CEO of the future combined company.
The divestment process will be carried out in the framework of the relevant social processes and the ongoing dialogue with the employee representatives' bodies. It will be submitted to the relevant competition authorities and to the shareholders of CRH. The divestments are subject to the completion of the merger, including a successful public exchange offering and approval by Holcim's shareholders in the second quarter of 2015. The closing of the planned merger is expected in the first half of 2015.
ACCC says that Boral is not passing on its carbon tax savings 02 February 2015
Australia: The Australian Competition and Consumer Commission (ACCC) has said that it is 'chasing up' Boral's failure to pass on savings from the carbon tax repeal.
Legislation to remove the tax was passed in July 2014. ACCC chair Rod Sims said that compliance from the affected businesses had since been very good. However, he singled out landfill companies and Boral for not passing on savings.
The ACCC said that Boral had informed customers in 2012 that the price of cement and terracotta products would increase by 1% and 3% respectively. Boral's CEO Mike Kane said, at the company AGM in October 2013, that the carbon tax would cost it about US$15m/yr.
"We've got a couple of companies that we're chasing up, but they're more ambiguous and so we haven't named them," said Sims. "But Boral, yes, we do have a problem. We're engaging with them." A spokesman for Boral said that it was continuing to comply with its obligations related to the tax removal.
Kading to acquire majority of System Cement 02 February 2015
Ukraine: Mining company Kading Companies has signed an agreement to acquire 70% of Ukrainian cement producer, System Cement Group (SCG). System Cement owns 100% of SCG, which is located in Vinnitsa, Ukraine. Kading said that its next objective would be to produce consolidated audited financial statements. Terms of the deal were not disclosed.
Kading Companies is focused on mining operations that are producing or can be producing within six months of acquisition. Kading is focused on a global basis, with its initial emphasis in South America, West Africa and now Ukraine.
Charlevoix cement plant expansion cleared 02 February 2015
US: The Charlevoix County Board of Commissioners has approved the proposal by St Marys Cement to expand its cement plant in Michigan State. St Marys Cement, part of Votorantim Group, is planning a US$130m upgrade to the Charlevoix plant, which would increase its production capacity from 1.3Mt/yr to nearly 2Mt/yr.
According to local press reports, in a 5:1 vote that followed the hearing, the county board approved the upgrade plan. Commissioner George Lasater provided the lone vote in opposition. He said that he simply wanted to do more research on the proposal. Other commissioners described their votes in support as important to sustaining the economy in Charlevoix County.
The proposal now moves to the state Department of Environmental Quality for final approval. If the Charlevoix plans were rejected, St Marys officials have said they will seek to reopen the Illinois plant.
Cementos Argos persists with waste tyres scheme 02 February 2015
Colombia: Cementos Argos innovation vice-president Camilo Restrepo has persisted with a project to use waste tyres as an alternative fuel in Colombia. Some 120,000 - 130,000/yr tyres are wasted in Colombia.
Cementos Argos is already using waste tyres as fuel in the US and Honduras and says that the same will be done in Colombia. It put forward its plans to local associations and has been discussing these for five years. Cementos Argos could use 60,000 - 70,000t/yr. Its kilns will have to be adapted at cost of US$5 – 20m each. It will start with its unit in Rioclaro, where tests are underway already. The plant can use 15,000 - 20,000t/yr of waste tyres.
Swiss prosecutor opens Holcim insider trading probe 02 February 2015
Switzerland: The Swiss Attorney General's office has opened an investigation into possible insider trading in the securities of cement producer Holcim Ltd, the office has said in a statement.
The investigation was first reported by the NZZ am Sonntag newspaper, which said that suspected insider trading took place just before Holcim's announcement in April 2014 of a plan to merge with France's Lafarge. The investigation is probing a possible offence by a 'secondary insider,' not someone with authorised access to insider information, but who obtained such information in an unauthorised way, the Attorney General's office said. The statement gave no further details.