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Competition and Markets Authority refers Breedon Aggregates purchase of Hope Construction Materials for further investigation 12 April 2016
UK: The Competition and Markets Authority (CMA) has referred the proposed acquisition of Hope Construction Materials by Breedon Aggregates for further investigation unless Breedon can take action to address competition concerns. An initial study by the CMA found that competition issues might arise in 27 ready-mixed concrete sites, causing potential price rises for end consumers. The study ruled out any competition issues with regards to the companies’ aggregates and cement markets.
“The vast majority of the merger raises no concerns but there are a number of areas where the companies compete strongly with each other for customers and the concern is that the loss of such rivalry could lead to price rises for customers. The businesses may now resolve these concerns or face a detailed investigation,” said Sheldon Mills, CMA Senior Director of Mergers. Unless Breedon takes action an in-depth phase two investigation will be conducted by the CMA.
Breedon responded that the CMA’s response was expected. Subject to agreement with the CMA on appropriate remedies, Breedon expects to complete the acquisition later in 2016. Breedon announced in November 2015 that is was planning to buy Hope Construction Materials for Euro480m.
Syria: Most of a group of 300 cement workers kidnapped from the Al-Badiyeh Cement Company have been released. The Syrian Observatory for Human Rights monitoring group said that all the workers had been released with the exception of 30 guards at the plant. The Islamic State-affiliated Aamaq news agency added that the majority of the workers were released after questioning about their religious and political backgrounds. It said that four workers who belonged to the Druse community were killed and 20 other pro-government gunmen were still being held.
Nigeria: Dangote Cement has started building a 6Mt/yr cement plant in Okpella, Edo. The Nigerian cement producer has invested US$1bn in the plant, according to All Africa. The company is also building another 6Mt/yr cement plant in Itori, Ogun. Its cement production capacity in Nigeria is expected to grow to 41Mt/yr once construction of both plants is complete. The groundbreaking event was part of the celebrations to mark company owner Aliko Dangote’s 59th birthday.
Jabal Saraj cement plant reopens after 20 years 11 April 2016
Afghanistan: The Jabal Saraj cement plant in Parwan has reopened after 20 years. The plant originally closed in 1996 due to the civil war in the country. Local officials have stated that the plant can now produce 100t/day of cement. Provincial governor’s spokesman Wahid Sediqi said the government has invested more than US$1m to help restart operations at the plant, according to the Khaama Press. More investment will be required to increase the plant’s production output.
Thailand: Thailand will continue to be Italcementi Group's production base in the Association of Southeast Asian Nations (ASEAN) and as its springboard for expanding into Myanmar after HeidelbergCement acquires a 45% stake in the company in July 2016. Carlo Pesenti, the chief executive officer of Italcementi, made the comments about the future direction of the business in an interview with the Nation newspaper.
"HeidelbergCement, which will be the major shareholder of Italcementi when the deal is complete this July, has a policy to maintain the business in Thailand and its business plan to expand into Myanmar, because HeidelbergCement does not have a presence in Thailand,” said Pesenti. “Thailand is our production hub and business arm for expanding in ASEAN."
Italcementi Group holds a 49% stake of Asia Cement in Thailand. Asia Cement and its subsidiary Jalaprathan Cement have cement production capacity of 5Mt/yr. Asia Cement has set aside an investment budget of up to US$14m to maintain its three clinker and cement plants in Thailand. However, the company it waiting for the acquisition of Italcementi by HeidelbergCement before it can decide about expansion plans in Cambodia and other territories.