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Both HeidelbergCement and Italcementi released their third quarter financial results for 2015 this week. The results are worth comparing given the impending acquisition of Italcementi by HeidelbergCement.

HeidelbergCement has reported a rise in revenue of 8% to Euro10.1bn for the first nine months of 2015. Its net profit rose by 27% to Euro762m from Euro599m. Its earnings before interest and income taxes (EBIT) rose by 17% to Euro1.4bn. By region, growth in revenue was reported everywhere except for the group's Eastern Europe-Central Asia region. Notably growth in the group's Asian region is slowing, growth is growing in Africa and markets are recovering in North America and the UK. It is also worth noting that the group's cement and clinker sales volumes fell by 1.1% to 60.6Mt in the first nine months of the year.

Italcementi has reported a rise in revenue of 3% to Euro3.2bn for the first nine months of 2015. It reported a loss of Euro8.1m, down from a loss of Euro63.8m in the previous period. Its EBIT fell slightly to Euro166m. By region the group reported that 'positive' trends in North America, India and Morocco, together with reducing operating expenses in Europe, would be insufficient to counteract revenue losses in France and Egypt. Overall cement and clinker sales fell by 1.4% to 32.1Mt.

Compared to its 2014 results, HeidelbergCement seems set to recover some of its revenue and profit growth after fluctuating income since 2008. Meanwhile, Italcementi has been continuing to cut costs, rebuild its business and profitability. So there are no obvious shocks to the apparent value of either company at this stage. It is also worth noting that the good geographical complementarity of each company's assets could make any potential renegotiation less likely. Everybody looks set to gain something should the purchase go through.

The deal in late July 2015 announced that HeidelbergCement would be purchasing 45% of Italcementi's shares at a price of Euro10.60 per Italcementi share for a total price of Euro1.67bn. The only clause mentioned so far has been 'subject to contractual purchase price reductions'. The deal is still expected to be completed in the first half of 2016 following approval from competition authorities. Approval from the Competition Commission of India was announced in September 2015.

The diverging values of Lafarge and Holcim before their merger in mid-2015 had consequences that led to haggling over the deal and the removal of Bruno Lafont as the proposed CEO of LafargeHolcim. The difference here is that HeidelbergCement is buying Italcementi as opposed to merging with it. However, the performances of both companies remain paramount. Now as then the question will be: is the cost worth it?

For more information read Global Cement's article on the HeidelbergCement purchase of Italcementi in our September 2015 issue.

Netherlands: LyondellBasell, one of the world's largest plastics, chemical and refining companies, has appointed Thomas Aebischer, former CFO at Holcim, has been appointed as Executive Vice President and Chief Financial Officer (CFO) effective from 1 January 2016.

"Thomas is a highly experienced and accomplished leader who brings a global perspective, deep knowledge of financial markets and significant experience at the executive level of large, multinational companies. Given his past experience and success in a variety of financial positions all over the world, I am very confident that he will be a tremendous asset as we continue to execute our long-term growth strategy," said Bob Patel, LyondellBasell's Chief Executive Officer.

Aebischer joins LyondellBasell after having served in a variety of positions, including CFO, over a nearly 20-year career with Holcim. In his role as Holcim's CFO, Aebischer's responsibilities included the company's information technology, accounting and administration, investor relations, risk management and procurement functions. Earlier in his career, Aebischer held positions with PricewaterhouseCoopers and the Bern cantonal tax authorities in Switzerland.

"LyondellBasell's transformation into one of the premier companies in the petrochemical industry is very impressive," said Aebischer. "It is truly an honour to join Bob and his team of leaders, who share a relentless focus on safety, operational excellence and the creation of shareholder value."

As LyondellBasell's CFO, Aebischer will be nominated to serve as a member of the company's management board and will be responsible for leading the company's treasury, information technology, tax, finance and accounting functions. Aebischer will report directly to Patel.

Morocco: Holding company Anouar Invest plans to build a 500,000t/yr cement plant in Laâyoune as part of the new southern provinces development projects in infrastructure and housing. With an investment package of US$30m, Ciement Sud (CIMSUD) will start operations by July 2017. The plant will be located in the area in Foum El Oued, Laâyoune. The group has also started construction of a cement plant in Settat with a budget of US$300m. It will produce 2.2Mt/yr of cement and will be in operation late 2018.

Italy: Buzzi Unicem's profit in the first nine months of 2015 grew to Euro120m from Euro51.4m in the same period of 2014. Its revenues increased by 5.2% year-on-year to Euro1.99m and its earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 16.4% to Euro352m.

Buzzi said it sees good momentum of demand in the US, but suffered from 'remarkably lower results' in Ukraine and Russia, penalised by the depreciation of the local currencies. Deliveries were subdued in Central Europe, while in Italy cement consumption is still down.

For the whole of 2015, Buzzi confirmed that it expects its recurring EBITDA to improve to approximately Euro450m.

Spain: La Unión Cement has been accused of producing sexist advertising, including using bikini-clad women and close ups of cleavages, to sell its product, according to local media.

A court in Valencia is due to rule on the alleged sexist advertising after a lawsuit was filed against the building supplies company in October 2015 by the Madrid-based Institute of Women, part of the government's Ministry of Equality. It is the first time the Violence Against Women department of the public prosecutor's office has been part of a case of sexist advertising and it will rule alongside the department of trade on the case.

The lawsuit concerns various promotional videos for the cement company, which show scantily clad women for no apparent reason, according to the Institute of Women. "Our job is usually based on raising awareness of gender equality, but sometimes there are instances, such as this, when we are moved to take legal action," said the Institute´s Head of Communication, María Jesús Ortiz Gómez.

The prosecution has demanded that the cement company cease all allegedly sexist advertising and has also asked the court to ban any further usage of the images in question. The defence has argued that the images belong to an old campaign that is no longer running. La Unión has previously been keen to point out how much it prizes equality. "La Unión reaffirms its corporate vision in favour of the training of women and their inclusion in the company," it said in a press released dated August 2015. The company claims that it 'exceeds today´s standards of equality and gender parity.'

Guatemala: Cementos Progreso will donate US$0.26 for every bag of cement sold in ConstruRed stores in Guatemala towards a fund that will be used to build 100 homes in the country. Consumers will be asked to put forward the name of someone they know who needs a home as part of this action. They have to be over 18 and have a plot of land ready for their home. The recipient will also have to give proof of a monthly incomes of less than US$650 in order to qualify.

Japan: Sumitomo Osaka Cement's operating profit rose by 14% year-on-year to US$83m in the April – September 2015 period, according to Reuters. Its sales rose by 3.7% to US$937m and its net profit rose by 84.8% to US$62.4m.

Ghana: Western Diamond Cement Limited (WDCL) has launched its product in Takoradi under the brand name 'Diamond Cement.' The company, which has the first vertical cement mill in Ghana, will produce 42.5 rapid and 32.5 rapid cements. It has 6500t of clinker storage.

Buddarajo Roju, Manager of Quality Control at Western Diamond Cement Limited, said that Ghana is a vibrant economy and that there is rapid growth in the whole of West Africa, especially infrastructural development. He said that the company is committed to implementing the Environmental Impact Statement to the Environmental Protection Agency and mitigation measures on dust generation, noise impact, as well as liquid and solid waste.

Brazil: Votorantim Cimentos has inaugurated a 206,000t/yr mortar plant at the Camacari industrial hub, in Salvador, north-eastern Brazil. This is Votorantim's sixth unit in operation in north-east Brazil and it received US$6.48m in investment. The plant will generate 80 direct and indirect jobs.

Cameroon: The launch of Ciments de l'Afrique Cameroun's (CIMAF) new 500,000t/yr cement plant brings Cameroon's cement plant number to three. The Moroccan-based company has been supplying cement to Cameroon for several months and intends to increase production to about 1Mt/yr in the near future.

The other two cement plants in the country are Les Cimenteries du Cameroun, the oldest company in the country that produces 1.6Mt/yr, as well as Dangote Cement Cameroon, which was commissioned several few weeks ago and produces 1.5Mt/yr of cement. Estimated domestic cement demand stands at 2.8Mt/yr. Turkey's MEDCEM is also constructing a 600,000t/yr cement plant in Douala.