×

Warning

JUser: :_load: Unable to load user with ID: 772

Holcim and Cemex to swap assets in Europe

Print this page

Europe: Mexican cement producer Cemex and Swiss multinational cement maker Holcim have announced that they have reached an agreement to conduct a series of transactions in Europe. The transactions will are expected to be complete in the final quarter of 2013, subject to regulatory approval.

Cemex will acquire all of Holcim's assets in the Czech Republic, which include a 1.1Mt/yr cement plant, four aggregates quarries and 17 ready-mix plants.

Cemex will sell its assets in the western part of Germany to Holcim, which include one cement plant and two grinding mills that encompass a total capacity of 2.5Mt/yr, one slag granulator, 22 aggregates quarries and 79 ready-mix plants. Cemex will retain its interests in other parts of the country.

In Spain, Cemex and Holcim will combine all their cement, ready-mix and aggregates operations. Cemex will have a 75% controlling interest over the combined operational assets and Holcim will control 25%.

As part of these transactions, Holcim will pay Cemex Euro70m in cash. Additionally, the transactions are expected to generate synergies that will result in a recurring improvement in Cemex's EBITDA (earnings before interest, tax, depreciation and amortisation) of US$20-30m, which will begin to be realised in 2014.

"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.

"This transaction will significantly strengthen our presence in Germany while at the same time giving us the necessary flexibility in Spain," said Holcim CEO Bernard Fontana. "Overall, our footprint in Europe will be considerably strengthened."

Last modified on 18 October 2013

URL: https://globalcement.com/news/item/1906-holcim-and-cemex-to-swap-assets-in-europe

© 2020 Pro Global Media Ltd. All rights reserved.