12 February 2016
Bid made for Lafarge Halla Cement 12 February 2016
South Korea: The South Korean private equity fund Glenwood Private Equity will join with Hong Kong-based private equity fund Baring Private Equity Asia to buy Lafarge Halla Cement from LafargeHolcim for US$455m, according to investment bank sources.
According to investment bank industry sources on 11 February 2016, Glenwood PE, a preferred bidder of Lafarge Halla Cement, has notified LafargeHolcim that it selected Baring Private Equity Asia as a joint takeover partner. The group will decide whether to give a final nod to the acquisition proposal ahead of its shareholders’ meeting scheduled in March 2016.
Glenwood PE will likely establish a strategic partnership with a local cement company after it buys Lafarge Halla Cement. The possible cement companies include Sungshin Cement Co. with a 12.9% market share as of 2014 or Hanil Cement, which had a 13.6% market share in 2014. The combined market share of Lafarge Halla Cement (12.1%) with either of the cement companies would top the 19.8% share held by the current South Korean market leader Ssangyong.
ACC reports 69% drop in profit 12 February 2016
India: ACC Ltd has reported a 69% drop in its consolidated net profit for the quarter ending 31 December 2015, on account of lower income from avenues other than its core business.
The consolidated net profit was US$14.9m compared to U$47.8m in 2014. Net sales rose by 3% to US$417.3m from US$404m in 2014. Its earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 9% to US$41.0m from US$37.7m in 2014.
Raysut Cement profit drops by a fifth in fourth quarter 12 February 2016
Oman: Raysut Cement reported a 21.5% drop in fourth-quarter net profit, according to Reuters’ calculations. The largest cement firm by market value in the sultanate made US$13.4m in the three months ending 31 December 2015, compared with US$17.0m in 2014. Raysut’s net profit for 2015 was US$54.6m, down by 23.6% on the US$71.2m it earned in the previous year.
Workers stage strike at LafargeHolcim 12 February 2016
South Africa: LafargeHolcim staff planned to strike on Friday 12 February 2016 over wages at the local operations of LafargeHolcim, according to the National Union of Mineworkers (NUM) and Pretoria News.
The NUM, which started pay talks with the Franco-Swiss company in October 2015, was demanding a salary increase of 13% and benefits including a housing grant, according to union shop steward Petrus Mositi. NUM members made up about half of the company's workforce. "We can still work this issue out depending on availability and willingness to find a solution," said Mositi.