Displaying items by tag: Acquisition
India: The shareholders of Jaiprakash Associates approved the sale of the group’s cement business to UltraTech Cement. According to the deal, arranged earlier in 2016, UltraTech Cement will buy Jaiprakash Associates' cement plants in Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh, which have a total production capacity of 21.1Mt/yr, at an enterprise value of US$2.4bn. In addition, it will acquire a 4Mt/yr grinding plant being built in Uttar Pradesh.
Approval has been obtained from the Competition Commission of India, according to the Press Trust of India. The next step involves seeking approval from the concerned High Court and the final approval from capital markets regulator.
Elementia to buy 55% stake in Giant Cement Holding
14 October 2016US: Elementia has signed a letter of intent with Cementos Portland Valderrivas to buy 55% of Giant Cement Holding for an undisclosed value. Giant Cement Holding is a US cement producer with operations on the east coast that includes three cement plants, three limestone quarries, two aggregate quarries, six terminals and four waste handling facilities.
In a statement Elementia said that the acquisition would grant it access to the third-largest cement market in the world. The acquisition is subject to obtaining all applicable regulatory approvals and the completion of the internal processes by both companies.
LafargeHolcim buys stakes in SCB Lafarge Benin and Cimencam
13 October 2016Benin/Cameroon: LafargeHolcim Maroc Afrique has purchased a 50% stake in SCB Lafarge Benin and 54.7% in Cimencam in Cameroon. Amounts for the deals have not been disclosed, according to the Ecofin Agency. LafargeHolcim Maroc Afrique, a joint venture between Lafarge Holcim and the Société nationale d’investissement also bought Socimat in Cote d’Ivoire in July 2016.
SCB Lafarge in Benin produces about 600,000t/yr of cement and Cimencam produces 1.7Mt/yr. The new acquisitions are part of LafargeHolcim’s expansion strategy across Africa. Countries with high growth potential such as Burkina Faso, Gabon, Mali, Mauritania, Congo, DRC and Senegal have also been targeted.
India: Orient Cement is to buy three cement plants from Jaiprakash Associates for US$292m. The cement producer will acquire a 74% stake in Bhilai Jaypee Cement for US$217m from Jaiprakash Associates and the Nigrie cement grinding plant from Jaiprakash Power Ventures for US$75m, according to the Press Trust of India.
Bhilai Jaypee Cement, a joint venture between Jaiprakash Associates and the Steel Authority of India Limited (SAIL), has a 2.2Mt/yr integrated Portland slag cement plant in Satna Madhya, Madhya Pradesh and a grinding plant in Bhilai, Chhattisgarh. The acquisition will also give Orient Cement access to limestone reserves and other raw materials including slag. The Nigrie cement grinding plant in Singrauli, Madhya Pradesh, has a capacity of 2Mt/yr.
"The current proposal to acquire BJCL from JAL is a significant step towards accomplishing our current mission of reaching a capacity of 15Mt/yr by 2020," said CK Birla Group chairman CK Birla, owner of Orient Cement. At present, the cement producer has 8Mt/yr from three plants in Telangana, Maharashtra and Karnataka.
Sinoma unit sells stakes in Midong Tianshan and Fukang Tianshan
23 September 2016China: Xinjiang Tianshan Cement, a subsidiary of China National Materials Company (Sinoma), has arranged to sell stakes in two of its companies to Zhongtai Chemical. Zhongtai Chemical will acquire a 64.6% equity interest in Xinjiang Midong Tianshan Cement and the entire equity interest in Xinjiang Fukang Tianshan Cement, currently held by Tianshan Cement. It will also acquire a 19.47% equity interest in Midong Tianshan held by Xinjiang Tunhe Cement.
Sinoma said that the equity transfer aims to respond to the national policy of production capacity reduction, quality improvement and efficiency enhancement, and to realise the preservation and appreciation of the assets of Tianshan Cement.
Cemex amends US asset sale to Grupo Cementos de Chihuahua
30 August 2016US: Cemex and Grupo Cementos de Chihuahua (GCC) have amended the terms of a sale of assets to GCC previously announced in early May 2016. The assets being sold by an affiliate of Cemex to an affiliate of GCC in the US have changed and mainly consist of Cemex’s cement plant in Odessa, Texas, two cement terminals and the building materials business in El Paso, Texas and Las Cruces, New Mexico. Cemex’s cement plant in Lyons, Colorado and cement terminal in Florence, Colorado are no longer part of the assets being sold to GCC. Upon closing of this transaction GCC will pay Cemex US$306m.
The sale is subject to customary closing conditions, including approval from the US competition authorities and GCC’s shareholders, as well as GCC obtaining financing to purchase the assets. The deal is expected to be completed before the end of 2016.
China: SOCAM Development has agreed to sell a 35% stake in Nanjing Jiangnan Cement for US$22.1m to Country Garden. Nanjing Jiangnan Cement produces and trades cement in Nanjing. SOCAM Development plans to sell its remaining 25% stake in Nanjing Jiangnan Cement to Country Garden at a later date, according to ET Net News.
India: Reliance Infrastructure has completed the sale of its 100% shareholding in Reliance Cement to Birla Corporation, part of MP Birla Group. The US$715m deal, valued at US$140/t of cement production capacity, was announced in February 2016. The transaction has now completed following the transfer of shares and receipt of sale consideration. Proceeds of the sale will be used by Reliance Infrastructure to pay off its debts.
US: HeidelbergCement, through its subsidiaries Essroc and Lehigh Hanson, has entered into a definitive agreement with Argos USA, a subsidiary of Cementos Argos, to sell its Martinsburg, West Virginia cement plant and eight related terminals. The disposal was required by the Federal Trade Commission (FTC) to address competition concerns arising from its acquisition of Italcementi. The agreement is subject to the approval of the FTC and other customary closing conditions. The transaction purchase price is US$660m on a cash and debt-free basis. HeidelbergCement expects the transaction to close in the fourth quarter of 2016.
“With the disposal of the Martinsburg plant we have successfully finalised our disposal programme in the context of the Italcementi acquisition,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “Together with the disposals of the non-core assets and the Belgium assets of Italcementi we have exceeded our Euro1bn target on disposal proceeds and thereby further improved the net financial position of HeidelbergCement.”
Gloria Group buys Cementos Otorongo from Votorantim
17 August 2016Peru: Consorcio Cementero del Sur (CCS), a subsidiary of Gloria Group, has signed a contract to buy all of Brazil’s Votorantim’s shares in Cementos Otorongo for US$4m and those of Votorantim’s subsidiary Corporación Noroeste. Cementos Otorongo is planning to build a cement plant in southern Peru for US$125m, according to the Gestión newspaper. Cementos Otorongo submitted an environmental impact study on the project in 2011 for proposed sites in La Joya, Arequipa and Mollendo, Islay. The planned plant will have a production capacity of 0.65Mt/yr.
This story was corrected on 18 August 2016 following clarification from Votorantim.