Displaying items by tag: Acquisition
FLSmidth taps into Chinese pollution-control sector
09 March 2012China: The major Danish cement plant manufacturer FLSmidth has achieved authority approval of its first acquisition in China, which will help it to secure a lucrative share of the multibillion dollar Chinese market for environmental control technologies. The move comes less than a month after China announced new NOx emission regulations, providing an excellent market for FLSmidth's new capabilities.
Together with a minority shareholder, FLSmidth has started a company to market and sell air pollution control products to the cement industry in China. This local company is groundbreaking for FLSmidth as it combines local presence and relations with global technologies and resources. The founder company, Chinese Sino Environment Engineering Development Co. Ltd. (SEPEC), continues as a minority shareholder and brings a large reference base and contact network from the cement industry in China, both on a corporate and a plant level.
"FLSmidth and SEPEC are the perfect fit," said FLSmidth CEO Jørgen Huno Rasmussen. "FLSmidth's strong technological platform coupled with SEPEC's strong organisation, reputation and customer base in China will enable us to develop air pollution control products that are uniquely designed together with the Chinese customer and fit his specific requirements."
The local company will market FLSmidth's highly-efficient air pollution control products and thereby help Chinese cement manufacturers to fulfil the new and stricter emission standards imposed on the industry. As the majority shareholder, FLSmidth will retain the intellectual property rights to the technology. The Chinese market accounts for half of the total world market for air pollution control equipment. "With China's increased focus on environmental aspects as stated in the 12th five year plan, the timing of FLSmidth's local expansion is just right," said CEO of FLSmidth China, Anders Bech.
Dalmia Bharat picks up 50% stake in Calcom
18 January 2012India: Dalmia Cement Bharat Ltd. (DCBL), a subsidiary of Dalmia Bharat Enterprises, has picked up a 50% stake in Assam-based Calcom Cement India (Calcom) for an investment US$47m. Calcom is in the process of expanding its consolidated cement manufacturing capacity to 2.1Mt/yr.
Amit Chaudhery, group corporate communications at Dalmia Bharat Group, said, "DCBL has arrived at an in-principle agreement with Assam-based Calcom Cement for a 50% stake in that company. Calcom Cement has a robust presence in markets of the northeast. The 50% ownership of this 2.1Mt/yr semi-commissioned plant is the first concrete example of the non-organic, acquisition-based growth strategy of DCBL."
DCBL's move is part of its larger aims to expand its cement business to northern and northeastern. Dalmia has 9.5Mt/yr capacity and holds little over 45% in Orissa Cements, which has a capacity of around 5.5M/yr. The company is also looking to set up two greenfield plants in Karnataka with a capacity of 2.5Mt/yr each.
CRH completes Odessa acquisition
11 January 2012Ireland/Ukraine: Europe Materials, a division of the Irish holding company Cement Roadstone Holdings (CRH,), completed the acquisition of 51% of the shares of LLC Cement in Odessa in southern Ukraine on 5 January 2012.
CRH intends to use the plant, which can produce up to 0.5Mt/yr of cement, for grinding clinker produced at Podilsky Cement in the east of the country.
The purchase follows clearance in December 2011 by Ukraine's Antimonopoly Committee (AMKU) to allow CRH to purchase the company.
Rumours that Lafarge will sell South African operations
22 December 2011South Africa: Lafarge, the world's largest cement maker, is rumoured to be seeking a buyer for its cement operations in South Africa in a deal that may fetch US$700-800m. Potential bidders are rumoured to include the Indian conglomerate Aditya Birla Group, the owner of India's largest cement maker, UltraTech Cement Ltd.
Possible delay on Verkhnebakansky purchase
16 December 2011Russia: Russia's Federal Antimonopoly Service (FAS) has said that it is considering the application by businessman Lev Kvetnoi, owner of cement producer Novoroscement, to buy the Verkhnebakansky cement plant from businesswoman Yelena Baturina.
The watchdog said it needed time to collect additional information on the deal, adding that it would extend the consideration period by two months.The application was submitted by Gazmetallproyekt, which runs Kvetnoi's assets. In November 2011 Baturina sold the Verkhnebakansky cement plant to Kvetnoi for around US$534m.
Sika picks up Italcementi’s admixture business
15 December 2011Switzerland/Italy: Sika AG, the Swiss specialty chemicals company, is to acquire the global concrete admixture and cement grinding aid businesses of the Italcementi Group (directly or indirectly controlled by Italcementi or Ciments Français). The businesses are on the market under the brand Axim. Axim has approximately 150 employees in Italy, France, the US, Canada, Morocco and Spain. In 2010 it generated sales of around Euro61m.
"This agreement will allow the group to capitalise the value of this business," said Giovanni Ferrario, COO of Italcementi Group. "Moreover, this will further extend the relationship between Italcementi and Sika, enhancing the reputation of both companies as innovators in the field of concrete and cement."
This acquisition allows Sika to significantly strengthen its market position in the relevant countries. As Sika's CEO, Ernst Baertschi, said, "This acquisition is a major step for Sika in the process of expanding market shares in the admixture business worldwide."
CRH cleared for Odessa expansion
05 December 2011Ukraine/Ireland: Ukraine's Antimonopoly Committee (AMKU) has allowed Jura-Cement Fabriken AG, a subsidiary of Ireland's Cement Roadstone Holding (CRH), to acquire control of LLC Cement in Odessa. The AMKU committee said that this decision allows Jura-Cement-Fabriken to hold over 50% of the votes in the Odessa plant's management body.
The Odessa Cement Plant started operations in 1965 and its capacity is currently 550,000t/yr. The plant was acquired in May 2005 by the Portuguese company Cimento e Produtos Associados S.A., which is owned by Cimpor, Teixeira Duarte and Engenharia e Construcoes, amongst others. LLC Cement's general director, Miguel Machado, has stated that Euro40m has been invested in the Odessa plant since 1996. CRH currently owns OJSC Podolsk Cement and LLC Lviv Concrete in Ukraine.