
Displaying items by tag: Divestments
Türkiye: Cementir Holding subsidiaries Çimentaş and Alfacem have entered a binding agreement to sell 100% of Kars Çimento to Arkoz Madencilik. Kars owns a 0.6Mt/yr integrated cement plant in northeastern Türkiye. The transaction is valued at €51m and is expected to complete by the end of 2025, subject to regulatory approvals. The company currently employs approximately 90 people.
Cementir Holding chair and CEO Francesco Caltagirone said “This divestment is part of our commitment to enhancing our operational efficiency and strengthening our competitive positioning by focusing on high-growth regions.”
Titan finalises divestment of Adocim
20 May 2025Türkiye: Titan Cement has finalised the sale of its 75% share in Adocim following regulatory approvals. The group will continue to operate cement grinding and supplementary cementitious assets elsewhere in Türkiye. Titan Cement says that the divestment forms part of its broader strategy to strengthen its portfolio.
Update on Brazil, April 2025
16 April 2025It’s been a strong start to 2025 for the Brazilian cement sector. The National Cement Industry Union (SNIC) reported recently that cement sales in the first quarter of 2025 have been the strongest since 2015. Producers sold 15.6Mt in the three month period, a rise of 5.9% year-on-year from 14.7Mt in the same period in 2024.
The result has been attributed to a growing real estate market boosted by housing schemes such as the ongoing Minha Casa Minha Vida programme. SNIC also noted a growing labour market and wage increases, although sales from infrastructure projects failed to keep up. Unfortunately, SNIC is wary of whether the positive news will continue in the second half of 2025. Risks such as interest rates, growing general debt levels and the effects of any potential international trade wars all lie ahead.
Graph 1: Cement production in Brazil, 2017 - 2024. Production estimated for 2024 based on National Cement Industry Union (SNIC) preliminary data on sales. Source: SNIC.
Based on preliminary SNIC data from December 2024, the country likely had its best year in 2024 since the market peaked in the mid-2010s. Cement sales were reported to have risen by 3.9% to 64.7Mt in 2024. Consumption was 73Mt. An estimate of production based on the same rate of growth suggests that cement production may have grown to 69Mt in 2024 from 66.5Mt in 2023.
The three main cement companies - Votorantim Cimentos, InterCement and CSN - each reported domestic earnings growth in 2024. In Votorantim’s case net revenue in Brazil was flat in 2024 at US$1.39bn but its adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 4% year-on-year to US$390m supported by higher prices, volumes and lower costs. InterCement has been in a debt resolution process since December 2024, which will be discussed below. Its sales volumes of cement were flat at 8.6Mt and sales revenue fell by 6.6% to US$557m. Yet, adjusted EBITDA rose by 10.2% to US$135m. CSN’s sales volumes of cement increased by 5.9% to 13.5Mt and its cement business sales revenue by 5.7% to US$810m. However, its adjusted EBITDA zoomed ahead by 39.5% to US$231m. The group attributed its higher sales volumes of cement to its strategy of focusing on logistics and distribution centres to target new markets, build market share and boost synergies.
As covered by Global Cement Weekly previously, InterCement has been trying to sell assets since at least the early 2010s. High debt levels have been a problem more recently and the company entered into judicial recovery, a court-led debt recovery process, in December 2024. How this process plays out should inform the nature of any subsequent divestment of assets. InterCement attempted to sell its subsidiary in Argentina, Loma Nega, to CSN in 2024. Unfortunately, this reportedly failed due to the appreciation of Loma Negra and due to disagreements between bondholders and shareholders of parent company Mover, according to the Valor Econômico newspaper. At home in Brazil, Buzzi, CSN, Huaxin Cement, Polimix, Vicat and Votorantim have all been linked to a potential sale of InterCement assets in a piecemeal fashion. Votorantim, in particular, is expected to face opposition from the local competition regulator CADE if it attempted to buy all of InterCement’s cement plants.
It’s positive to see the cement industry in Brazil starting to reach the sales levels last recorded in 2014. SNIC, understandably, isn't taking anything for granted. It’s warned of more modest growth in 2025, compared to the strong opening quarter, with levels forecast to be somewhere between 1 - 1.5%. It says that this will depend on the “evolution of the economy, monetary policy and investments in infrastructure and housing.” It has also warned of “uncertainties arising from the US.” The other big ‘if’ is whether InterCement can actually start selling cement plants in 2025. Time will tell.
Tunisia: Votorantim Cimentos has completed the full sale of its assets in Tunisia to China-based Sinoma Cement. Votorantim Cimentos operates the Ciments de Jbel Oust plant in Tunisia. The transaction follows the fulfilment of precedent conditions, including regulatory approvals in China, Tunisia and the Common Market for Eastern and Southern Africa (COMESA). Delivery of the assets and financial settlement were also concluded.
Concerns over Lafarge Africa’s sale to Huaxin
28 March 2025Nigeria: The Senate has directed the Bureau of Public Procurement to halt the planned sale of Lafarge Africa to Chinese producer Huaxin Cement on ‘national security and economic sovereignty grounds’, according to the This Day newspaper. Concerns have reportedly been raised that the deal could lead to capital flight, job losses and reduced regulatory oversight over a sector vital to national development.
Holcim, which owns an 84% stake in Lafarge Africa, initially announced the company’s sale to Huaxin Cement for US$1bn in December 2024. The transaction is set to complete in 2025, pending regulatory approvals.
Senator Shuaib Afolabi Salisu said “We cannot afford to wake up one day and realise that our cement industry, one of the backbones of our economy, is entirely in foreign hands. We must ensure that strategic assets like Lafarge Africa remain in the hands of those who have the country’s best interests at heart.”
Senator Olamilekan Adeola said “The company is about to be divested and the transaction has been shrouded in secrecy. What the motion is simply asking for is that we want this transaction to be as transparent as possible. By the time the eventual sale of this company is done, we will be fully satisfied that Nigeria’s economy will be protected.”
Cemex reportedly contemplating sale of Colombian business
25 February 2025Colombia: Cemex is ‘exploring’ the possible sale of its business in Colombia, Bloomberg has reported.
Cemex previously delisted Spain-based Cemex Latam Holdings from the Colombian Stock Exchange in 2023.
Ultracem sells some of Honduras assets for US$56m
24 February 2025Honduras: Ultracem has announced that, through its subsidiary Ultracem Centroamérica, it is selling some of its assets in Honduras. The transaction involved the indirect sale of Duracem Honduras shares to Blackriver Overseas for US$56m.
The producer completed the sale on 20 February 2025, after fulfilling the conditions of the purchase agreement. It stated that the sale is “part of Ultracem's corporate strategy to focus its business on cement and concrete production activities in Colombia.”
Titan Cement divests assets in eastern Türkiye
19 February 2025Türkiye: Titan Cement has agreed to sell its 75% stake in Adocim Cimento Beton to Mugla Cimento (50%) and Yurt Cimento (25%) for US$87.5m. The assets include a cement plant, terminal and related infrastructure in eastern Türkiye.
The transaction is expected to close in the second quarter of 2025, subject to regulatory approval. Titan Cement will retain its grinding and supplementary cementitious materials assets in other parts of the country.
Heidelberg Materials to sell DRC cement business
28 January 2025Democratic Republic of the Congo: Heidelberg Materials has agreed to divest its 91% stake in Cimenterie de Lukala, a cement producer in the Democratic Republic of the Congo (DRC), to WIH Cement Developing Company. The transaction comprises an integrated cement plant in Lukala, near the capital of Kinshasa. The financial terms of the transaction were not disclosed. Completion is expected in 2025, subject to regulatory approvals.
Pharaon Investment looking to offload Attock stake
30 December 2024Pakistan: Lebanon's Pharaon Investment Group Limited is reportedly considering the sale of its 84% stake in Attock Cement Pakistan, according to Pakistan Today. The holding company recently announced that it was re-evaluating its long-term strategic options in Pakistan, which also include Attock Petroleum, Attock Oil Company and Attock Refinery.
Attock Cement has been 'battered' by low demand in the Pakistani cement industry in recent years, following a period of expansion in the early 2010s. It produced 0.31Mt of cement in the first quarter of the 2025 financial year (to 30 September 2024), an 11% year-on-year fall from 0.35Mt a year earlier.