Displaying items by tag: Acquisition
UNACEM considering buying ARPL Tecnología Industrial
28 February 2018Peru: UNACEM is considering buying local engineering company ARPL Tecnología Industrial, according to the Gestion newspaper. The plans will be discussed at a forthcoming shareholders meeting in late March 2018. ARPL Tecnología Industrial is an engineering company that specialises in the cement industry. It has operated for over 50 years. It offers consultancy services, and technical assistance, development and project engineering managing services, as well as analysis and physical chemical tests and computer services.
India: Dalmia Bharat Cement and UltraTech Cement have each submitted bids of around US$930m for Binani Cement. The amount also includes upfront cash payments, as well as an offer of close to 20% stake in Binani to lenders, according to sources quoted by the Hindustan Times. A winning bid is expected to be chosen by the end of February 2018.
Both bidders have been asked for additional details related to their bid to allow the creditors to make their final decision. UltraTech Cement, for example, has been asked to provide information on a Competition Commission of India (CCI) penalty imposed upon it in 2016.
Breedon Aggregates in talks to buy Lagan Cement
19 February 2018Ireland/UK: Breedon Aggregates is reportedly in talks to buy a part or all of Ireland’s Lagan Group, according to the Sunday Times newspaper. Breedon Aggregates and Lagan’s subsidiary Whitemountain operate an asphalt joint venture at present. However, Lagan Group did not respond to a request for comment on the talks.
Breedon Aggregates purchased Hope Construction Materials in 2016, which included the Hope cement plant. The acquisition boosted Breedon’s financial results in 2017 giving it a revenue of Euro523m and it described the year as the, “…most eventful year in the group’s history.”
Lagan Cement operates a 0.7Mt/yr plant in Kinnegad in Ireland. In late 2012 it proposed a joint venture with Quinn Building Products. However, the deal fell through in early 2013 following the receipt of a package containing a bullet which was sent in the post to the Lagan's chief executive, Kevin Lagan. The bullet, which was sent to Lagan at his Belfast office, was accompanied by a message stating, "Quinn ... is this what you want".
Binani back on the market
07 February 2018India: Binani Cement is back on the market after its liabilities were revised upwards, according to sources close to the deal. JSW Cement had previously emerged as the winner of a very competitive bidding process earlier in 2018 with an offer of US$919m. The creditors have now sought fresh bids from interested parties, which previously included LafargeHolcim, HeidelbergCement, Ramco Cement, UltraTech Cement, Dalmia Bharat and the Bain Piramal Resurgence Fund. The resolution professional, Deloitte Touche Tohmatsu India LLP partner Vijaykumar Iyer, has set a new deadline of 12 February 2018, extended from 5 February 2018.
The additional liability of around US$250m has emerged due to Binani Cement’s corporate guarantee for the acquisition of a fibreglass asset in Europe known as 3B in 2012 by group company Binani Industries. As one of the contacts close to the deal is reported to have said, ‘this is not a small amount.’
Mega Conglomerate to buy Dewan Cement
01 February 2018Pakistan: Mega Conglomerate says it plans to buy an 87.5% stake in Dewan Cement. The buyer operates in the dairy and real estate sectors. Dewan Cement operates two cement plants. Bestway Cement and Fecto Cement have previously made bids for Dewan Cement.
Halla Cement sold to Asia Cement for US$723m
23 January 2018South Korea: Baring Private Equity Asia has sold Halla Cement to Asia Cement for US$723m. The combined business will be the third largest cement player in Korea, with a combined market share of 19%.
Baring Private Equity Asia bought Lafarge Halla Cement from LafargeHolcim in 2016. It took full control of the cement producer in 2017. It was then reported to be shortlisting potential buyers for the company in September 2017.
Halla Cement operates one cement plant at Okgye and three slag cement grinding plants. It has a cement production capacity of 7.6Mt/yr. It also runs 11 distribution centres in the country, consisting of seven coastal and four inland centres.
Shree Cement expands into UAE with purchase of Union Cement
12 January 2018UAE: India’s Shree Cement has purchased Union Cement Company (UCC) based in the UAE for US$305m. Its board approved the acquisition of at least a 92.8% share in the company, according to the Press Trust of India. The transaction is expected to be completed by September 2018. Following the deal Shree Cement’s cement production capacity will rise to 33Mt/yr from 29.3Mt/yr. The acquisition is the company’s first outside of India.
UCC was established in 1972. It operates a cement plant Ras Al- Khaimah with a clinker production capacity of 3.3Mt/yr and a cement production capacity of 4Mt/yr.
Bangladesh: Lafarge Holcim Bangladesh has completed its purchase of Holcim Cement Bangladesh for US$60.2m. The deal includes three cement grinding mills with a total production capacity of 2.2Mt/yr. Lafarge Holcim Bangladesh, formerly known as Lafarge Surma Cement, is a joint venture between LafargeHolcim, Cementos Molins and other local partners.
Italcementi completes acquisition of Cementir Italia
03 January 2018Italy: HeidelbergCement’s subsidiary Italcementi has completed its acquisition of Cementir Italia following approval by the Italian competition authority. The competition body gave clearance to the acquisition in November 2017 subject to certain conditions, including the divestment of some plants. Italcementi will reveal which units it intends to sell by mid-2018. The acquisition cost Euro315m.
“For Italcementi, the acquisition is a unique opportunity to grow and consolidate its position in the Italian market. We see strong recovery potential in Southern Europe and especially in Italy over the coming years. With this acquisition we are very well positioned to create value through synergies, efficient processes, and the offer of high-quality and innovative products,” said Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
Italcementi and Cementir Holding entered into an agreement to buy Cementir Italia, and its subsidies Cementir Sacci and Betontir, in mid-September 2017. Cementir Italia’s business includes five integrated cement plants and two cement grinding units with a total cement capacity of 5.5Mt/yr, as well as a network of terminals and concrete plants, all operating in Italy. Minimum annual run-rate cost synergies of Euro25m are expected to be achieved by 2020.
Canadian pension firms buy minority stakes in Fives
02 January 2018Canada/France: Pension investment management companies La Caisse de dépôt et placement du Québec (CDPQ) and the Public Sector Pension Investment Board (PSP Investments) have each purchased a minority stake in France’s Fives. CDPQ and PSP Investments will each acquire a ‘significant’ minority stake in Fives, which will remain controlled by its management, to support its next development phase. Ardian, an investment house, will continue to be part of the new shareholding structure, as a minority co-investor. The completion of the transaction remains subject to approval by relevant regulatory authorities. No value for the deal has been disclosed.
“We are very enthusiastic to enter a new phase of our development with CDPQ and PSP Investments. Their long-term approach to investment, their deep valuable industrial insights and their strategic vision aligned with that of the management team make them ideal partners for the group, allowing Fives to take advantage, at a global scale, of the full potential of our diversified operations,” said Frédéric Sanchez, chief executive officer (CEO) of Fives Group.
Founded in 1812, engineering company Fives designs and supplies machines, process equipment and production lines for industries including cement, minerals, aluminium, steel, glass, automotive, aerospace, logistics, energy and sugar. The group is located in over 30 countries and it has nearly 8400 employees.