Holcim and Cemex have announced a range of transactions in Europe that aim to help both companies strengthen their operations in the region. Holcim expects the changes to generate at least €20 million in additional operating EBITDA, while Cemex predicts a US$20 – 30 million recurring improvement in EBITDA, beginning in 2014.
Holcim will pay Cemex €70 million in cash as part of the interlinked transactions detailed below. Subject to due diligence and approvals from the necessary authorities, the transactions are likely to close in 4Q13.
Holcim will acquire Cemex assets in western Germany, including a cement plant and two grinding mills, which together have a production capacity of 2.5 million t. It will also purchase 22 aggregates quarries, a slag granulator and 79 ready-mix plants. Holcim will combine the assets with its existing operations in northern Germany. The move will help Holcim to connect the German sites with its operations in France Benelux. Cemex will still maintain a presence in the country, with operations in eastern, southern and northern Germany.
Cemex will acquire Holcim Cesko, comprising a 1.1 million t cement plant, four aggregates facilities and 17 ready-mix sites. Holcim will serve customers in the country via its Rohoznik plant in Slovakia.
Cemex and Holcim plan to combine their cement, aggregates and ready-mix operations in Spain. Cemex will have a 75% share in the operations while Holcim will hold a 25% stake and remain a shareholder for at least five years.
“This transaction will significantly strengthen our presence in Germany while at the same time giving us the necessary flexibility in Spain,” commented Holcim CEO Bernard Fontana. “Overall, our footprint in Europe will be considerably strengthened.”
“When finalised, this will be an important strategic step that should allow Cemex to improve its footprint in Europe, and it will consolidate our portfolio in the continent,” said Lorenzo H. Zambrano, Chairman and CEO of Cemex.
Adapted from press releases by Louise Fordham
Read the article online at: https://www.worldcement.com/europe-cis/28082013/holcim_cemex_announce_interlinked_transactions_in_europe_130/