The European Commission is continuing its inquiry into the acquisition of Cemex West by Holcim. Thus far it has concluded that the acquisition would have an impact beyond national borders, affecting parts of Belgium, the Netherlands and northeast France, as well as Germany. The German Competition Authority put in a referral request back in September to handle the inquiry under national competition law, but this was rejected on the basis of the aforementioned findings.
The proposed transaction entails the acquisition by Holcim of Cemex’ activities in cement, ready-mix concrete, aggregates and cementitious materials in western Germany and a few plants and sites in France and the Netherlands.
The deal was initially announced as part of a range of interlinked transactions between Holcim and Cemex that would see Holcim acquire Cemex West assets, while Cemex would acquire Holcim Cesko in the Czech Republic. Cemex and Holcim also plan to combine their assets in Spain, with Cemex taking a 75% share in the operations while Holcim will hold a 25% stake and remain a shareholder for a minimum of 5 years.
This latter acquisition is also being investigated by the European Commission over concerns it would give Cemex a monopoly on the cement market in Spain.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/europe-cis/06012014/european_commission_continues_investigation_into_cement_asset_swap_562/