Displaying items by tag: Sale

Australia: Boral has agreed to sell its roof tiles business to private equity company Lutum and other investors. The Australian newspaper has reported that the deal is part of Boral’s exit out of building materials markets in Australia.

Oman: The government is reportedly considering selling its majority stake in Oman Cement. Unnamed sources quoted by Bloomberg say that the authorities have been discussing the matter with financial advisors but that no final decision has been reached. The government owns a 54% stake in the cement producer through the Oman Investment Authority.

In separate reporting, Oman Cement Company has postponed its proposed US$250m Duqm cement plant project while it confirms the availability of fuel. In March 2021 the cement producer issued a tender for a related power plant project, according to the Muscat Daily newspaper. The proposed plant will have a clinker production capacity of 5000t/day.

Paraguay: Argentina-based Loma Negra has sold its 51% stake in Yguazú Cementos. The El Cronista Comercial newspaper has reported that the proceeds of sale of the 0.8Mt/yr installed cement production capacity subsidiary will go towards paying off Loma Negra’s debts. The company said, “Loma Negra’s objective is to seek and execute projects with high potential. For this reason, after having started marketing operations in Paraguay in 2000, built and operated the factory since 2013 and reached high standards of production and profitability, we have finally decided to finalise its sale.”

Yguazú Cementos sold 260,000t of cement in the first half of 2020, down by 6.8% year-on-year from 267,000t in the first half of 2019. This generated revenues of US$25.4m, up by 39% from US$18.3m and constituting 12% of Loma Negra’s total sales of US$212m over the period. The company valued the asset at US$80m on 30 June 2020. The buyer is a Paraguayan company reportedly connected to remainder shareholder Intercement.

Yguazú Cementos’ 0.4Mt/yr Ascunsción cement plant in Capital District and 0.4Mt/yr Villa Hayes cement plant in Presidente Hayes Department supplied 40% of Paraguay’s cement demand in 2019.

Philippines: LafargeHolcim’s sale of its 86% stake in Holcim Philippines to San Miguel Corporation for US$2.15bn has fallen through after the Philippines Competition Authority (PCC) failed to approve the deal within 12 months of its conclusion. Reuters News has reported that the agreement, dated 10 May 2020, covered the exchange of four integrated plants and one grinding plant. LafargeHolcim has been divesting assets to pay off debt. The sale of its Holcim Philippines stake would have completed its withdrawal from the South-East Asia market, where its operations across Indonesia, Malaysia, Singapore and the Philippines had been valued at US$4.90bn.

LafargeHolcim has said that three of its four integrated Philippines cement plants have been able to resume operations following the lockdown due to the coronavirus outbreak. It says that it will ‘focus on strengthening operations in the Philippines.’

Taiwan: Asia Cement Corporation has announced its collaboration with Germany-based energy company Innogy on construction of a 448MW wind power plant off Taiwan’s north-west coast near Hsinchu City. Renewables Now has reported that Asia Cement Corporation will supply cement for the project, which will see power sold to the national grid.

Innology, which has participated in the construction of offshore wind plants with a total capacity of 2500MW in Europe, opened its first Taiwan office in 2018.

Thailand: The coronavirus pandemic has caused Siam Cement Group (SCG) to postpone its initial public offering (IPO) for 30% of its packaging subsidiary SCG Packaging at a value of US$1.0bn, which was reportedly due to take place in early 2020. Reuters News has reported that the company has yet to set a new date for the IPO.

Egypt: Germany-based HeidelbergCement subsidiary Suez Cement’s losses fell by 11% year-on-year to US$75.0m in 2019 from US$84.1m in 2018. Mubasher News has reported that sales also fell, by 13% to US$41m from US$0.47bn.

Suez Cement is seeking buyers for its 51% stake in Kuwait-based Hilal Cement.

US: Mexico-based Cemex has confirmed that its 75% subsidiary Kosmos Cement, which it holds jointly with a subsidiary of Italy-based Buzzi Unicem, has completed the sale of its 1.7Mt/yr integrated Louisville plant to Eagle Materials for US$665m. Cemex says that it will receive US$499m in proceeds from the sale.

Namibia: China-based West China Cement concluded a sale and purchase agreement for Germany-based Schwenk Zement subsidiary Schwenk Namibia for US$104m on 3 January 2020. The Nambian newspaper has reported that the deal is awaiting clearance from authorities. Schwenk Namibia holds a 70% stake in Ohorongo Cement. Singaporean authorities stopped the sale of Schwenk Namibia to Singaporean-based International Cement Group (ICG) in September 2019 due to the latter’s inability to cover the losses of the Namibian company.

India: Emami Group has indicated that it will receive bids for its cement division Emami Cement from mid-January 2020. Business Standard newspaper has reported that Aditya Birla’s UltraTech Cement is likely to submit an offer in the region of US$0.94bn for the company – over 20% lower than Emami Group’s previously projected evaluation of US$1.18bn for Emami Cement. It also reported the possible involvement of Switzerland-based LafargeHolcim’s Ambuja Cements in the upcoming auction.