Displaying items by tag: Acquisition
Vicat to buy additional 42% stake in Sinai Cement
11 April 2022France/Egypt: France-based Vicat has issued a mandatory tender offer to buy an additional 42% stake in Sinai Cement. The proposal follows a final settlement agreement signed between Vicat and the Egyptian government in late March 2021, according to the Daily News Egypt newspaper. Following the completion of the transaction Vicat should own a 98% in the Egypt-based cement producer based on its reported ownership at the end of 2021.
In 2021 Vicat raised a case against the Egyptian government with the International Centre for Settlement of Investment Disputes. Media reports at the time alleged that the cement producer was being forced to reduce its shares in its subsidiary Sinai Cement due to a law stopping foreign ownership of companies operating in the Sinai Peninsula on the basis of security grounds. Around the same time Vicat also announced publicly that it was keen to continue operating in the country.
CSN receives Holcim Brazil acquisition approval
07 April 2022Brazil: The General Superintendence of the Administrative Council for Economic Defence (CADE) has approved CSN’s takeover deal with Holcim for the latter’s Brazilian business. The América Economía newspaper has reported that the US$1.03m deal covers five cement plants, among other assets.
Holcim has said that its Latin America region remains strategically important within its global operations.
Tohbu Network acquires Tohoku Sanko
06 April 2022Japan: Logistics group Tohbu Network has acquired Shiogama-based cement distributor Tohoku Sanko. The Nikkei newspaper has reported that Tohoku Sanko serves the customers of cement producers in Akita and Miyagi Prefectures. The group aims to expand its sales footprint and its productivity through shared use of vehicles, facilities, software and human resources.
Premji Invest to acquire 10% Sagar Cements stake
28 March 2022India: Sagar Cements has received board approval for the preferential allotment of a 10% stake of equity shares to Premji Invest. ET Now News has reported the value of the deal as US$46m.
Joint Managing Director Sreekanth Reddy Sammidi said “We are delighted to partner with Premji Invest and look forward to their inputs towards strengthening our processes and systems and enhancing value for all our stakeholders.”
US: Argos USA has agreed to sell a total of 23 US ready-mix concrete batching plants to Smyrna Ready Mix Concrete for US$93m. 18of the plants are situated in North Carolina and the remainder in Southwest Florida. The El Colombiano newspaper has reported that the deal includes a five-year cement supply agreement for all 23 plants. Cementos Argos said that the divestment is part of its plan to divest assets in suburban markets or that are not already integrated into its production and logistics chain.
China Resources Cement’s profit drops in 2021
21 March 2022China: China Resources Cement’s profit was US$993m in 2021, down by 13% year-on-year from 2020 levels. Its cost of sales grew by 22% to US$3.81bn from US$3.12bn. The group noted that the average cost of coal increased by 54% in 2021. It also pointed out that infrastructure investment growth slowed down in 2021. The company increased its turnover for the year by 9.7% to US$5.62bn. Sales volumes of cement and clinker fell by 7% to 81.3Mt and 7% to 3.3Mt respectively. Concrete sales volumes grew by 11% to 14.8Mm3.
During 2021 the group started construction of a second clinker production line and two cement grinding lines at its plant in Wuxuan, Guangxi. Once the upgrades are completed the plant will have a total cement and clinker capacities of 2.4Mt/yr and 1.4Mt/yr respectively. The group also acquired a 51% stake in Hunan Liangtian Cement in January 2022 to enter into the market in Chenzhou, Hunan. This company has cement and clinker production capacities of 1.6Mt/yr and 2Mt/yr respectively. An ongoing upgrade will increase the cement production capacity of 2.1Mt/yr. In March 2022 it sold its 72% stake in Shanxi China Resources Fulong Cement to Tangshan Jidong Cement to enable it to leave the northern market.
China Resources Cement has also been growing its co-processing capabilities in 2021. At the end of the year it reported 10 co-processing projects with a total capacity of 1.7Mt/yr. The projects, mostly based in Guangxi and Yunnan provinces, process municipal solid waste, urban sludge and industrial waste.
Sika acquires Sable Marco
03 March 2022Canada: Switzerland-based Sika has acquired cement products and mortars company Sable Marco. The group hopes that the acquisition will open new opportunities for it in Eastern Canada. Sable Marco reportedly generated full-year sales of US$21.7m in 2021.
Çimsa Çimento’s sales rise by 80% to Euro240m in 2021
02 March 2022Turkey: Çimsa Çimento revenue grew by 80% year-on-year to Euro240m in 2021 from Euro133m in 2020. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) grew by 46% to Euro41.4m from Euro28.5m. The subsidiary of Sabancı Holding says that 54% of its sales in 2021 came from foreign sales. However, it noted that its production energy costs increased by 94%. It also reported that its alternative fuels substitution rate hit 15%.
“In July 2021 we took over the Buñol Factory in Valencia, Spain with Cimsa Sabancı Cement. With the addition of the Buñol Factory to our production and distribution network, we have strengthened our export network and expanded our sphere of influence in Europe, North Africa and South America,” said chief executive officer Umut Zenar. With the acquisition of the white cement plant in Spain, Çimsa Çimento says it has become one of the largest white cement producers in the world.
Shree Global to acquire remaining 40% stake in Union Cement Norcem
17 February 2022UAE: Shree Global has agreed to acquire a further 40% stake in Union Cement Norcem for US$3.95m. The deal will increase Shree Global’s stake in the company to 100%. It is expected to complete the transaction by the end of June 2022. Union Cement Norcem markets and sells oil well cement, while Shree Global’s parent company, India-based Shree Cement, operates a 4.8Mt/yr cement plant at Ras Khaimah.
Eco Material Technologies acquires Green Cement
15 February 2022US: Eco Material Technologies has successfully completed its acquisition of near-zero carbon cement alternatives producer Green Cement. Eco Material Technologies previously agreed to acquire Boral’s US fly ash business in December 2021, a transaction which it expects to conclude in 2022.