BBMG to sell stakes in cement units to Jidong Cement

Reuters are reporting that China's building materials supplier BBMG Corporation plans to sell stakes in 31 cement-related units valued at US$2.3 billion to Jidong Cement as part of Beijing's plans to consolidate the sector.

As part of the overall company restructuring, Tangshan Jidong Cement Co Ltd will eventually become a unit of BBMG as the government tries to get rid of smaller and inefficient players in various sectors, such as cement, glass and steel.

In May, China's cabinet said it would put 60% of its cement and glass capacity in the hands of the biggest 10 firms by 2020 to reduce a supply glut through mergers and acquisitions.

In a statement, Jidong Cement announced that it aimed to raise up to 3 billion yuan in a private placement of shares to help fund the stake acquisitions.

Edited from source by Joseph Green. Source: Reuters

Read the article online at: https://www.worldcement.com/asia-pacific-rim/01072016/bbmg-sell-stakes-cement-units-jidong-cement-446/