Displaying items by tag: Bid

Russia: Holcim said that it has received interest from over 30 possible buyers for its Russian business. The group announced that it would sell the assets, including three cement plants, in March 2022, after the Russian invasion of Ukraine on 24 February 2022.

Chief executive officer (CEO) Jan Jenisch said that the sale would need to be handled ‘with very great diligence.’ He continued "We don't expect to write it off completely. I would hope this business has a value." Jenisch asked investors and commentators to ‘give us a couple of months’ to ‘get more clarity.’

India: UltraTech Cement has taken legal advice for its planned bid for Holcim's Indian business and says that it will volunteer to divest 15Mt/yr-worth of cement assets in order to accelerate the Competition Commission of India (CCI) approval process which would follow on from the acceptance of any offer. The Economic Times newspaper has reported that UltraTech Cement has filed five long form merger notifications for acquisitions of this type since 2013. These included its purchases of Binani Cement and Century Cement, and of Jaypee Group's Gujarati cement assets.

The Financial Express newspaper has reported that fellow contender Adani Group has offered 'more than' US$10bn for the assets, while JSW Group plans to offer US$7bn. BusinessLine Online News has reported that a fourth company, steel producer ArcelorMittal, has also held initial talks with Holcim over the assets.

In considering possible competition issues arising under any future deal, the CCI will factor in planned and upcoming cement capacity. In Gujarat, where Holcim India subsidiaries ACC and Ambuja Cements operate 6.8Mt/yr-worth of capacity, Adani Group plans to build a new 10Mt/yr cement plant at Lakhpat.

Brazil: Cement producers including CSN Cimentos, Cimentos Mizu, Cimento Apodi, InterCement and Votorantim have all bid for Holcim’s assets in Brazil. A consortium of CSN Cimentos, Cimentos Mizu and Cimento Apodi is reportedly intending to buy up to 10 production plants, according to sources quoted by Reuters. InterCement and Votorantim have also made offers but are bidding for smaller parts of the business due to competition law restrictions.

Votorantim has bid for plants in the north-eastern of the country and InterCement for those in the south-eastern states of Rio de Janeiro, Espirito Santo and Minas Gerais. Any eventual proposed acquisition will be subject to scrutiny by the Administrative Council for Economic Defence (CADE). Holcim expects to generate US$1 – 1.5bn from the eventual sale.

Brazil: Votorantim Cimentos is preparing to bid for some of LafargeHolcim’s assets in Brazil. However, the company is limited by local competition rules so it is unable to try and buy all of LafargeHolcim’s assets, according the Valor Economico newspaper. In a statement to Reuters, Votorantim said that it had not made a bid yet but that it was always open to new opportunities. LafargeHolcim was reported by local press in April 2021 as wanting to sell its assets in the country.

Egypt: The board of HeidelbergCement subsidiary Suez Cement has approved the launch of a tender offer for the company to acquire a 100% stake in Egyptian Tourah Portland Cement. Reuters News has reported the value of the deal as US$32.6m.

Egypt: Germany-based HeidelbergCement subsidiary Egyptian Tourah Portland Cement has said that it will accept offers for some items proposed for sale under auction of equipment from its decommissioned 1.0Mt/yr Tourah plant in Tura near Cairo, from which it expects to raise a total of Euro1.71m. The company said it had received ‘several bids.’ It stopped production in June 2019 due to its inability to cover costs.

Germany/Switzerland: LafargeHolcim has dropped a bid for BASF Construction Chemicals due to pricing issues, according to sources quoted by Bloomberg. The heavy building materials producer was also concerned about the length of the sale process and issues concerning integrating it into the group.

India: The National Company Law Tribunal (NCLT) in Mumbai has approved Dalmia Bharat’s offer for debt-laden Murli Industries, subject to conditions intended to stop the company going into liquidation. The tribunal has given Dalmia Bharat until 12 July 2019 to decide if it wants to proceed, according to the Economic Times newspaper. The conditions include forcing the buyer to reinstate lapsed mining leases related to Murli Industries itself and removing clauses allowing Dalmia Bharat to modify or withdraw its plans at any stage. Dalmia Bharat bid around US$60m to buy Murli Industries’ 3Mt/yr cement plant in Maharashtra in late 2017.

Germany/Switzerland: LafargeHolcim has reportedly placed a bid for BASF Construction Chemicals, according to sources quoted by Bloomberg. The cement producer has reached the second round of the bidding processing, along with companies including Bain Capital, Cinven and Standard Industries. The auction of the subsidiary of BASF that produces admixtures, mortars and grouts is expected to reach as much as Euro3bn. LafargeHolcim chief executive officer (CEO Jan Jenisch said in May 2019 that the company is considering at least 10 bolt-on assets purchases for 2019.

Philippines: Companies including Japan’s Taiheyo Cement, Thailand’s Siam City Cement and China’s Anhui Cement have been linked to the sale of Holcim Philippines. Local companies include Eagle Cement and DMCI Group, according to sources quoted by the Philippine Star. Non-binding offers were have been submitted in February 2019 but it is not clear which companies were involved. However, no agreement has been reached on price yet. LafargeHolcim has reportedly looking at selling its business in the Philippines as part of a review of its operations in South-East Asia.