HeidelbergCement has announced that it has increased its holding in Russian cement producer CJSC “Construction Materials”. After purchasing a 51% stake in CJSC in 4Q10, HeidelbergCement now has a 100% stake in the company.
CJSC “Construction Materials” is based in Sterlitamak and has a total cement production capacity of 1.8 million tpa. With around 760 employees, the company is the market leader in the Russian republic of Bashkortostan and one of the leading cement manufacturers in the Wolga region.
The acquisition is included in HeidelbergCement’s capital expenditure plan. The two companies have decided not to disclose the purchase price.
“The purchasing of the remaining 49% in CJSC is another good example of our strategy of low risk bolt-on acquisitions,” commented Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “Bashkortostan is one of the richest Russian republics with mineral oil reserves and a growing industrial landscape. CJSC is a highly profitable company and the increase in our stake to 100% fulfils all our investment criteria. In addition, the minority interests in the Group profit are reduced to the benefit of the HeidelbergCement shareholders.”
Adapted from press release by Louise Fordham.
Read the article online at: https://www.worldcement.com/europe-cis/19042013/heidelbergcement_holding_cjsc_russia_955/