
Displaying items by tag: Acquisition
Peru/China: China's Jidong Development Group may finalise discussions regarding the takeover of Peruvian cement firm Cementos Interoceanicos in the next couple of weeks, according to local media. With the acquisition, Jidong will be able to further expand its global reach.
Jidong representatives have visited Cementos Interoceanicos' activities in Puno, southeast Peru, as part of the negotiations process, the news provider explained, adding that Cementos Interoceanicos is currently developing its manufacturing plant in the region. Cementos Interoceanicos also holds mining rights to 54km2 of land in the Puno region, smaller areas in Arequipa and other areas.
Belarus government to repay cement companies’ debts to China
07 January 2015Belarus: The Belarusian government will acquire additional stakes in three cement companies in exchange for helping them to repay loans to China's Eximbank. The Council of Ministers has issued a directive that provides for restructuring the overdue debts incurred by Belarusian Cement Plant, Krychawtsementnashyfer and Krasnaselskbudmateryyaly as of 1 October 2014.
The three cement producers will receive the bailout on condition that they meet their profitability of sales targets for 2015 and fulfil their obligations to Eximbank starting 2015. Krasnaselskbudmateryyaly, Belarusian Cement Plant and Krychawtsementnashyfer owe US$34.4m, US$43.7m and US$50.6m to the Chinese bank, respectively, in overdue loan payments.
Holcim and Cemex close transactions in Europe
06 January 2015Europe: Holcim and Cemex have announced the successful closure of a series of transactions in Europe.
Holcim has acquired Cemex's operations in western Germany and the Netherlands, while Cemex has taken over Holcim Czech Republic with all of its subsidiaries in that country. In Spain, Cemex has purchased Holcim's Gador cement plant and Yeles grinding station, while Holcim keeps its remaining operations.
As a result of the transactions, Cemex paid Holcim Euro45m in cash. Holcim expects sustainable additional operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of at least Euro10m/yr.
US/UK: HeidelbergCement has announced that it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American and UK building products business for an aggregate purchase price of US$1.4bn. HeidelbergCement said that up to US$100m will be payable in 2016, depending on the performance of the business in 2015. The deal excludes HeidelbergCement's Western Canada business. HeidelbergCement expects the transaction to close in the first quarter of 2015.
The sale of Hanson Building Products is consistent with HeidelbergCement's strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities, according to a HeidelbergCement spokesperson. HeidelbergCement will retain its Hanson units in the cement, crushed stone, sand and asphalt businesses in the UK.
Swiss CemIn West buys 96.6% of Ivano-Frankivskcement
23 December 2014Ukraine: Switzerland-based CemIn West SA has bought a 96.6% stake in Ukrainian building materials producer Ivano-Frankivskcement. The majority holding was bought from Cyprus-based companies Permixo Ltd, Basmaren Enterprises Ltd and Prenters Engineering Ltd, which sold their respective stakes of 36.98%, 20.76% and 13.3% in the Yamnitsa-based entity. Ivano-Frankivskcement manufactures cement, slate, asbestos cement pipes and concrete products. The plant made a net profit of Euro6.7m in 2013.
Graymont to buy Holcim’s McDonalds Lime for an undisclosed sum
15 December 2014Canada/New Zealand: Canadian lime company Graymont has agreed to buy McDonalds Lime from Holcim New Zealand and Bluescope Steel, owned New Zealand Steel, for an undisclosed sum. The McDonald's sale is subject to regulatory approvals and should be completed in 2015.
Holcim plans to close its Westport cement plant in 2016 and will also sell its Taylor's Lime assets to Graymont. McDonalds Lime is 72% owned by Holcim New Zealand, with the remainder owned by New Zealand Steel. It has the country's largest lime quarry at Oparure, north of Te Kuiti.
Graymont is North America's second-largest supplier of lime and lime-based products and also has an investment in Grupo Calidra, Mexico's largest lime producer. This is the Canadian company's first investment in the New Zealand market.
Holcim has been trying to sell the lime business, which it no longer considers a core business, as it plans for imported cement to replace local production at Westport. It wrote down the value of its Westport cement plant ahead of the coming closure, booking US$24.1m of charges for the plant. The plant will close by the second half of 2016 when new US$77.6m import facilities at Waitemata in Auckland and Timaru are fully operational. Plans for a new cement manufacturing plant at Weston in North Otago remain on hold, but Holcim is keeping the assets so it has the option of 'eventually building a new cement plant.'
Nigeria: Lafarge Africa made a US$122m offer on 10 December 2014 to buy out minority shareholders in its Nigerian business, Ashaka Cement. The offer follows the US$1.35bn merger of Lafarge Africa's Nigerian and South African businesses, which received approval from shareholders in July 2014.
Lafarge Africa said that as part of the merger deal it had acquired a 30% stake in Ashaka Cement, the trigger point for making a full takeover bid under Nigeria's securities and takeover rules.
Under the terms of the offer, shareholders who accept it will receive 57 Lafarge Africa shares for every 202 held in Ashaka Cement and an additional cash payment of US$0.0111/share. The offer will run from 10 December 2014 to 16 January 2015. Shares in Ashaka Cement have gained 17% in 2014.
The consolidation will enable Lafarge, which faces intense competition in Africa, to accelerate growth on the continent. Lafarge Africa owns60% of Lafarge Wapco, its listed subsidiary in Nigeria, 58.6% of Ashaka Cement Plc and 100% of the Atlas cement company. In November 2014, Lafarge Africa entered into an agreement to buy a 30% stake in United Cement Company from Flour Mills of Nigeria, which will give Lafarge's Nigeria Cement Holdings complete control.
UNACEM completes Ecuador acquisition
04 December 2014Ecuador/Peru: Peruvian cement producer Union Andina de Cementos (UNACEM) has completed the purchase of Lafarge's cement operations in Ecuador. "We are pleased with the closing of the transaction, which represents an important step in our growth strategy," said Carlos Ugás, managing director of UNACEM. The company closed the acquisition, which was initially announced in May 2014, for approximately US$517m. The deal involves the purchase of a 1.4Mt/yr cement plant located in Otavalo, in the north of Ecuador.
Russian Federal Antimonopoly Service allows Topkinsky Cement to acquire 25% stake in Iskitimtsement
03 December 2014Russia: Topkinsky Cement, a part of Siberian Cement, has received the Federal Antimonopoly Service's (FAS) permission to purchase a 24.92% voting stake in Iskitimtsement. Siberian Cement's stake will therefore grow to 49.899%. In February 2013 the FAS blocked Sibirsky Cement from acquiring a 90% stake of Iskitimtsement's voting shares.
Iskitimtsement posted a revenue of Euro85m and a net profit of Euro11m in 2013 compared to a revenue of Euro77m and a net profit of Euro16m in 2012. The cement plant holds 17% of the Siberian Federal District's cement market.
Dalmia Bharat buys out SAIL in Bokaro Jaypee Cement
03 December 2014India: Dalmia Bharat has acquired the final 26% stake that it did not already own in Bokaro Jaypee Cement from the Steel Authority of India (SAIL), for US$150m. Bokaro Jaypee Cement has become a wholly-owned subsidiary of Dalmia. In March 2014 Dalmia acquired Jaypee's 74% holding in the company.
Bokaro Jaypee Cement was formed as a 74:26 joint venture project between Jaiprakash Associates and SAIL, for the operation of a 2.1Mt/yr capacity grinding plant at Bokaro, Jharkhand. The cement produced in the unit was sold through Jaiprakash's distribution network under the brand name 'Jaypee Cement'. However, Jaypee exited the venture and used the proceeds to address its debt.