India-based cement producer, Shree Cement, is to buy a majority stake in UAE-based Union Cement Co. (UCC), following approval of the deal by Shree’s board of directors. UCC has an enterprise value of US$305.24 million; Shree will take a minimum 92.83% stake in the company.
Established in 1972 and listed on the Abu Dhabi Securities Exchange (ADX), UCC is a leading cement maker in the UAE. The company has clinker production capacity of 3.3 million tpy and cement production capacity of 4 million tpy.
In addition to ordinary portland cement, UCC produces a number speciality cements, including sulfate-resisting cement and oil well cement. The UCC plant is also located close to the Ras Al-Khaimah’s Saqr Port, allowing the company to serve the export markets of the Arabian Gulf, Middle East, and East Africa, in addition to the markets of the UAE.
The acquisition is subject to the conversion of UCC from a public joint stock company into a private joint stock company, delisting from the ADX – which is subject to UAE regulatory approval – and other conditions precedent. Completion of the deal is expected in about nine months.
Following the acquisition, Shree Cement will operate cement production capacity of around 33.3 million tpy. It will also expand its business beyond India for the first time.
Read the article online at: https://www.worldcement.com/indian-subcontinent/15012018/shree-cement-to-purchase-union-cement-co/