Displaying items by tag: Italy
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.
Authority sets out terms for Italcementi’s Cementir purchase
30 November 2017Italy: The Italian Competition Authority (ICA) has approved the purchase of Cementir Italia by HeidelbergCement’s subsidiary Italcementi, subject to the sale of certain assets. They are: The Cagnano Aminterno (L'Aquila) cement plant and the terminal at Reggio Calabria, currently owned by Cementir; the Maddaloni (Caserta) plant, currently owned by Cementir; the production facility at Spoleto,, currently owned by Cementir, and the production plant at Salerno, currently owned by Italcementi.
The ICA says that the sales are necessary to prevent excessive concentration in the sector.
Appeals to Italian competition regulator deferred until June 2018
13 November 2017Italy: Appeals by Italian cement producers to the judiciary of Lazio against fines imposed by the Italian Competition Authority (AGCM) has been deferred to June 2018. Italcementi, Buzzi Unicem, Colacem, Cementir, Sacci, Holcim, Cementirossi, Barbetti, Cementeria di Monselice, Cementizillo, Calme, Moccia, TSC and the Italian Cement Association (AITEC) were penalised more than Euro184m in July 2017 for allegedly coordinating sales prices and agreeing market share from June 2011 to January 2016, according to the ANSA news agency. The majority of the fine was levied on Italcementi and Buzzi Unicem at around Euro84m and Euro60m respectively. Itacementi started appealing against the sanctions in August 2017.
Buzzi Unicem’s revenue boosted by European and US sales
10 November 2017Italy: Buzzi Unicem’s revenue in the third quarter of 2017 has been boosted by strong sales in the US, Italy, Germany and Russia. Overall, its net sales rose by 6.7% to Euro2.13bn in the first nine months of 2017 from Euro2.00bn in the same period in 2016. Its cement sales volumes rose by 4.1% to 20.3Mt from 19.5Mt.
The group said that, although its operating performance was penalised at the end of August and in September 2017 by the impact of hurricane Harvey along the Texas coast, sales volumes of the group grew due to its acquisition of Zillo Group, which started in July 2017. With the exception of Ukraine, all countries in which the company operates in recorded gains in shipments and a marked increase was noted in Italy, Germany, the Czech Republic and Luxembourg.
Italy: Sales in Scandinavia and the US have stabilised Cementir’s growth so far in 2017. Its sales volumes of cement and clinker increased by 1.7% year-on-year, on a like-for-like basis, to 9.6Mt in the first nine months of 2017. This was attributed to a ‘favourable’ performance in Denmark, Egypt, Malaysia and China, slight growth in Turkey, although Italy recorded a downturn in sales volumes.
The group’s sales revenue remained flat at Euro964m for the period, on a like-for-like basis, despite the negative impact of foreign exchange rates. The group said that the positive trend of revenue in Norway, Denmark, Sweden, China and Italy offset a drop in Turkey and the fall in revenues expressed in Euros in Egypt, while revenue performance in Malaysia was almost stable. Cementir’s earnings before interest, taxation, depreciation and amortisation (EBITDA) rose by 0.6%, on a like-for-like basis, to Euro152m.
"The results in the first nine months of 2017 were slightly better than management expected following the strong performance of the Nordic and Baltic and US, despite the lower earnings in Turkey and the unfavourable exchange rates. The results benefited from the effect of the acquisitions in the second half of 2016, which contributed Euro30.5m to EBITDA,” said Francesco Caltagirone Jr, chairman and chief executive officer (CEO).
Cementir defends conduct in illegal waste investigation
29 September 2017Italy: Cementir has defended its conduct in an illegal waste investigation. It expressed ‘full confidence’ in the Prosecutor’s Office of Lecce following the decision by a judge to seize a power plant run by Enel, according to Reuters. The probe is exploring whether Cementir Italia’s Taranto plant purchased ‘illegal’ by-products from Enel and the ILVA steel plant to produce cement. Cementir confirmed that it had regularly purchased fly ash for its Taranto plant but that this ended at the start of 2016. It added that its use of sludge in cement production was covered by an Integrated Environmental Authorisation.
Cementir Holding leaves the Italian cement industry
20 September 2017We said to expect more consolidation in Italy. Well, today it happened. Last time Global Cement Weekly covered the country, in June 2017, it reported upon the Buzzi Unicem deal to buy Cementizillo. Today, HeidelbergCement announced that it is going to buy Cementir Italia from Cementir Holding for Euro315m.
Our first reaction is that the deal seems cheap. The agreement covers five integrated cement plants and two cement grinding plants with a total capacity of 5.5Mt/yr, as well as the network of terminals and concrete plants. HeidelbergCement is buying all of this for Euro57/t. This suggests a downward trend given that Buzzi Unicem paid Euro80/t for the Cementizillo units in mid-2017. Although, Cementir only paid Euro38/t when it purchased Sacci in mid-2016.
Cementir’s acquisition of Compagnie des Ciments Belges (CCB) boosted its sales revenue, volume and operating profit in 2016 and in the first half of 2017. However these figures suffered on a like-for-like basis due to falling revenue in Turkey and Malaysia. Overall revenue rose in Italy for the company in 2016 due to a growing ready mix concrete business. However, with this removed, its sales revenue would have fallen by 14% year-on-year due to a 13.5% decrease in the sales volumes of cement.
Cementir Holding chief executive officer (CEO) Francesco Caltagirone has framed the sale of Cementir Italia in terms of improved financial leverage. He’s placed it at close to 0.5x by the end of 2018. This, he says, will allow the group to “…take the opportunities arising in the future, as it has happened during the last twelve months.” By this he likely means the purchase of CCB. Given the low cost for what Cementir picked up the bankrupt Sacci, it makes one wonder whether their plan all along was to leave Italy and they just happened to pick up a bargain along the way.
Meanwhile, HeidelbergCement has framed its acquisition in terms of preparing its presence in the Italian market for the future when the recovery kicks in. The usual talk about synergies is also there and Italian workers for both Italcementi and Cementir Italia will be wondering what this means for their jobs. Given that the group’s overall sales have struggled to grow so far in 2017, the company may be telling the truth when it says it’s banking on the medium to long term in Italy. After all, in its half-year report for 2017, it described the Italian economy as subdued and reported cement sales volumes as ‘stable.’
Once the deal completes, Cementir Holding will be an Italian-based cement company without any production facilities in Italy. Unless the group is planning to re-enter its home market at a later date, it does suggest a certain lack of confidence at home. Let’s see if HeidelbergCement has the nerve to stick it out.
HeidelbergCement buys Cementir Italia
20 September 2017Italy: HeidelbergCement’s subsidiary Italcementi has agreed to buy Cementir Italia from Cementir Holding for Euro315m. The acquisition includes all of Cementir Italia’s cement and concrete businesses including the subsidiaries Cementir Sacci and Betontir. The transaction is expected to be completed in early 2018 subject to approval by the Italian Antitrust Authority.
“Cementir Italia provides an ideal industrial and geographic fit that significantly improves our nationwide presence in Italy,” said Bernd Scheifele, chairman of the managing board of HeidelbergCement. “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. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns.”
Cementir Italia’s business includes five integrated cement plants and two cement grinding plants with a total capacity of 5.5Mt/yr, as well as the network of terminals and concrete plants, all operating in Italy. Italcementi will fully integrate the operations into its current network. Minimum annual run-rate cost synergies of Euro25m are expected to be achieved by 2020. The acquisition will be financed with free cash flow. HeidelbergCement intends to pay for the purchase with the disposal of ‘non-core’ assets.
RHI and Magnesita make sales ahead of merger
11 September 2017Europe: RHI and Magnesita have announced divestment agreements ahead of their proposed merger. RHI has signed a contract with a European refractories supplier for an undisclosed sum regarding the sale of its dolomite business in the European Economic Area. The sale consists of the production sites at Marone in Italy and Lugones in Spain. Magnesita has entered into a definitive agreement with Intocast to divest its business related to the production and supply of magnesia carbon bricks produced at the company's Oberhausen plant in Germany for Euro20.3m. Both sales were required by the European Commission as part of the merger process.
“With the sale of the two sites, the combination of RHI with Magnesita is also still right on schedule,” said RHI’s chief executive officer Stefan Borgas with regards to his company’s divestments “We expect the confirmation by the European Commission in the near future.”
RHI signed a contract in August 2017 to sell its production sites at San Vito in Italy and Sherbinska in Russia that produce fused cast refractories for the glass industry. Production at the company’s plant at Aken in Germany was stopped in the first half of 2017 for an indefinite period. RHI plans to sell or close the plant to maintain its production utilisation rate across the business.
Buzzi Unicem announces purchase of 50% stake in Ecotrade
06 September 2017Italy: Buzzi Unicem has announced that it purchased a 50% stake in Ecotrade in early 2017. Ecotrade supplies industrial byproducts, such as fly ash and blast furnace slags, from power plants and steel mills to the cement industry with deliveries of over 2Mt/yr at its peak. The company is a member of the Italian Register of Environmental Operators and it has a national distribution network in Italy. Buzzi Unicem intends to use Ecotrade’s expertise to expand its operations internally.