Displaying items by tag: Acquisition
Croatia: The proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk is set to be blocked by the European Commission according to sources quoted by Reuters. The commission started investing the deal in October 2016 following plans by HeidelbergCement and Schwenk to buy Cemex Croatia via their jointly owned subsidiary Duna Drava Cement (DDC). The deal would see the largest producer in the area merged with the largest importer. However, a final decision on the transaction has not been made yet and the European Competition Commissioner Margrethe Vestager could still rule in favour of it. The commission is expected to make a final decision by 18 April 2017.
UK: Calderys has completed its acquisition of NG Johnson Northern, a refractory installation company based in Ellesmere Port. It aims to retain the brand and expand its Engineering, Design and Supervision activities in the UK market. NG Johnson Northern focuses on incineration, petrochemical and aluminium industries and its clients include Hanson, LafargeHolcim and Quinn Cement.
India: ACC has sold its 12.1% in Shiva Cement to JSW Cement for US$5.8m. Following the sale JSW Cement now holds the entire promoter holding in Shiva Cement, according to the Mint newspaper. In January 2017 JSW Cement announced that it was making an open offer to buy out Shiva Cement. Shiva Cement operates a 0.2Mt/yr cement plant in Rourkela, Odisha.
Germany: Schwenk Zement has been confirmed as the buyer of Opterra Zement’s Karsdorf cement plant. The transaction remains subject to the Germany competition body and this is expected to take up to six months, according to the Naumburger Tageblatt newspaper. Employees are reportedly ‘concerned’ about the acquisition because Schwenk Zement operates its Bernburg plant in the same state, Saxony-Anhalt. The deal also includes a cement grinding plant.
Vietnam: Thailand’s Siam Cement Group (SCG) has purchased a 100% stake in Vietnam Construction Materials for US$155m. The enterprise value of the transaction is valued at US$440m, including net debt and additional efficiency improvement investment to the acquired assets, according to the Bangkok Post. Vietnam Construction Materials has a cement production capacity of 3.1Mt/yr including one integrated plant at Tuyen Hoa in Quang Bing Province. The acquisition raises SCG’s cement production capacity in the Association of Southeast Asian Nations (ASEAN) region outside of Thailand to 10.5Mt/yr. It follows other purchases by SCG of Vietnamese building materials companies including the white cement producer Buu Long.
HeidelbergCement appeals against investigation by European Commission into purchase of Cemex Croatia28 February 2017
Croatia: HeidelbergCement has appealed against an investigation by the European Commission into the proposed joint purchase with Germany’s Schwenk Zement of Cemex Croatia. The cement producer asserts that by considering Schwenk and itself rather than Duna-Dráva Cement (DDC), a subsidiary that both companies own equally, the commission has given the transaction a ‘Union dimension,’ according to the Official Journal of the European Union. Although DDC is based in Hungary, within the European Union (EU), it imports cement into Croatia (in the EU) from Bosnia & Herzegovina, a country outside of the union. The appeal was made in late December 2016 but only reported in late February 2017.
The European Commission revealed that it was investigating the proposed acquisition of Cemex Croatia by HeidelbergCement and Schwenk in October 2016. The commission was concerned that the transaction would merge the biggest producer in the area with the biggest importer, potentially reducing local competition.
South Korea: Hanil Cement and LK Investment Partners have been chosen as the preferred bidders for the acquisition of Hyundai Cement. They won out against rival bidders as their offer was higher than expected at US$567m, according to the Maeil Business Newspaper. They were bidding to buy a 85% stake in Hyundai Cement. If the purchase completes then Hanil Cement could increase it market share to 30% from 20% at present.
Italy: Spectris, the company that owns Panalytical, has acquired Pixirad, a technology company that develops and distributes X-ray detectors. The business will be integrated into Panalytical within Spectris’ Materials Analysis division.
Pixirad was established in 2012 under the spin-off programme of the Instituto Nationale di Fisica Nucleare (INFN). The detector technology was originally developed through research into advanced particle physics and space research technologies and has been improved by Pixirad for use with high energetic X-rays. Before the purchase, Panalytical solds the Pixirad detectors as a high-end option for its Empyrean X-ray diffraction (XRD) instrument used for various materials analysis applications. Following the acquisition the combination of Pixirad’s technology with Panalytical’s experience in products using X-ray detectors is expected to allow expansion of the range applications addressed by existing and future instruments.
India: A representative of Jaiprakash Associates’ bank ICICI has told local media that its sale of assets to UltraTech Cement should be concluded ‘soon.’ ICICI Bank's managing director and chief executive officer Chanda Kochhar made the comments to the CNBC TV18 television channel in an interview. He added that the transaction was moving well in terms of regulatory approval. The deal covers over 20Mt/yr of cement production assets that are being sold for a value of US$2.4bn.
US: The shareholders of Headwaters have approved the acquisition of the company by Australia’s Boral. Over 98% of the votes cast were in favour of the deal. Boral will now continue to seek regulatory approval for the purchase and it plans to complete the deal by mid-2017. Headwaters’ Construction Materials division is one of the largest marketers of fly ash in the US.