
Displaying items by tag: Acquisition
Sagar Cements plans to acquire BMM Ispat cement business
12 September 2014India: Sagar Cements is reportedly planning to acquire cement business of Bangalore-based BMM Ispat Group. The deal is expected to be closed within two weeks with an approximate value of US$82.2m.
EC approves Spanish Cemex-Holcim deal
10 September 2014Spain: The European Commission has cleared the acquisition of the Spanish operations of the Swiss building materials group Holcim by its Mexican peer Cemex following an in-depth investigation.
Sagar Cements completes sale of its investment in Vicat Sagar Cement
08 September 2014India: Sagar Cements has completed the sale of its 47% stake in its joint venture company, Vicat Sagar Cement. Sagar had earlier obtained approval from the shareholders through postal ballot for the sale. Sagar and Vicat entered into the joint venture in June 2008 with the objective of setting up a 5.5Mt/yr cement plant in Gulbarga, Karnataka. The first phase of the plant, which was to reach a production capacity of 2.75Mt/yr, was completed in December 2012. Production commenced in January 2013.
UltraTech completes acquisition of cement units of Jaypee Cement
03 September 2014India: UltraTech Cement has completed the acquisition of cement plants of Jaypee Cement Corporation (JCCL) in Gujarat State. UltraTech informed the Bombay Stock Exchange that the acquisition process had been completed and became effective from 12 June 2014.
In September 2013 UltraTech acquired the cement unit of JCCL, which comprised an integrated cement plant at Sewagram and a grinding plant at Wanakbori, for US$627m. Post-acquisition, UltraTech's total capacity in India stands at 58.8Mt/yr. Including overseas capacity it is 62Mt/yr.
Shree Cement to acquire Jaiprakash grinding unit
27 August 2014India: Shree Cement has received the approval to acquire a 1.5Mt/yr cement grinding unit in Panipat, Haryana, which is currently owned by Jaiprakash Associates. The unit will reportedly be sold for US$59.6m.
The deal is subject to adjustments for any financial indebtedness and net working capital taken over as of the closing date and subject to satisfactory completion of due diligence and obtaining necessary approvals and consents.
Environnement SA acquires monitoring firm PCME
08 August 2014France/UK: Environnement SA, the French supplier of environmental monitoring equipment and the company PCME Ltd, the UK-based supplier of continuous particulate monitors for industrial processes, have announced the acquisition of PCME by Environnement SA.
The firms say that the acquisition allows the enlarged group to offer the most advanced and wide range of solutions worldwide so that it can match present and future challenges in respect of process or regulatory environmental monitoring requirements for industrial processes. This new alliance will shortly launch a new range of flow emission monitors and will engage in innovative joint research and development projects towards the production of new product ranges. Each entity will keep its own autonomy, with PCME retaining its current management team and employees.
François Gourdon, president and founder of Environnement SA, said, "We are very enthusiastic about the opportunities that we'll be able to provide to our worldwide industrial customers. The expertise of PCME for the monitoring of particulate in industrial processes, combined with the expertise of Environnement SA in the monitoring and detection of very low concentrations of gas and fine particulate, including PM10 or PM2.5, will definitively provide a new generation of equipment for the industrial regulatory market."
William Averdieck, managing director and founder of PCME Ltd, said, "Both management teams have known each other for many years and have respect for the success they have both achieved in similar markets with complementary product lines. This strong partnership announced today will boost our organic growth plan and strategy, allowing us to double our revenue within five years, reaching new customers, new markets and new applications worldwide, while maintaining our strength as an innovative (and passionate) manufacturer of particulate and flow instruments."
Votorantim and Molins join forces in new firm Yacuces
06 August 2014South America: Brazilian conglomerate Votorantim has teamed up with Spanish company Cementos Molins to expand their cement businesses in Latin America through newly formed cement company Yacuces.
Votorantim will have a 51% stake in the joint venture. The agreement involves the purchase of 66.7% of Bolivian cement company Itacamba for US$18.6m by Yacuces.
According to a statement filed with Spain's capital markets regulating commission CNVM, Itacamba has plans to invest around US$220m in the next two years to build a cement factory. Votorantim and Molins already have business partnerships in Argentina and Uruguay through cement companies Cementos Avellaneda and Cementos Artigas.
Lafarge sells its Pakistan business
24 July 2014Pakistan: Lafarge has announced that it will sell its 75.86% stake in Lafarge Pakistan Cement Ltd and will use the proceeds, estimated at Euro190m, to cut its debt. BestWay Cement has been announced as the buyer. The transaction still requires the approval of local market and anti-trust authorities.
Elementia in talks to buy out Lafarge in Mexico
15 July 2014Mexico: Mexico's cement producer Elementia is in talks to buy out its joint venture partner Lafarge, according to local media. Elementia has the right to buy Lafarge's 47% stake under an option described in the original terms of the partnership. Lafarge is said to be keen to avoid competing with itself in Mexico after agreeing to the US$40bn merger with Holcim, which already operates in the country.
The stake has been valued as high as US$500m. However, it is unlikely to attain that high a price because Lafarge has limited bargaining power and Elementia already has majority and management control of the joint venture. Lafarge may be forced to offer its stake at a discount to convince Elementia to buy. Lafarge and Holcim's recent proposed asset divestment list did not include the Mexican joint venture, which has a cement production capacity of 2Mt/yr.
Elementia sells cement in Mexico under the brand Cementos Fortaleza. Buying out Lafarge would bolster Elementia's position in Mexico, where cement demand is predicted to grow on the back of economic overhauls that were approved in 2013.
Spain: The European Commission (EC) has objected to Cemex's plan to acquire Holcim's Spanish units, according to Reuters.
Cemex and Holcim unveiled the deal in August 2013, part of which included Holcim taking over Cemex's German businesses. The EC cleared this deal unconditionally earlier in July 2014. However, the Spanish part of the deal triggered an in-depth probe by the EC in April 2014. The preliminary review showed that the takeover would substantially curb competition in the grey cement market in certain parts of Spain.
"The EC has sent a statement of objections to the companies," said an EC spokesperson.
"We cannot comment and the process is following its normal course," said Cemex. "Proper disclosure will be made when we have to make it." Cemex had offered some concessions during the EC's preliminary review, but these were not considered to be sufficient. The EC has set a 5 September 2014 deadline for its decision.