Displaying items by tag: Merger

Canada: The board of directors of Italcementi have met in Milan, Italy and have decided on integrate its operations in the Canadian market with the operations of HeidelbergCement, which from 1 July 2016 has been holding the majority stake in Italcementi and will take over the entire company following a mandatory takeover bid. The transaction involves the acquisition by Canadian Lehigh Hanson Materials (LHM), indirectly owned by HeidelbergCement, of the entire share capital, including ordinary and preference shares, of US-based Essroc Canada, which is indirectly owned by Italcementi, through vehicle company Essroc Netherlands. The price which Essroc will receive for the sale of Essroc Canada to LHM, equal to some US$281m, will be paid by assigning to Essroc 42,288 LHM shares of the new issue, or 15.5% in LHM share capital, and for the remainder - in cash US$151,000.

Azerbaijan: The Qazax Sement Zavodu LLC cement plant has merged with the Akkord Beton LLC concrete plant. The Ministry of Taxes of Azerbaijan reported the merger.

Switzerland: LafargeHolcim has announced that it will shed around 250 jobs as part of a reorganisation of its global operations. The announcement comes following the completion of merger proceedings between the former Lafarge and Holcim.

There will be 250 job reductions in corporate functions by the end of 2017, of which around 130 will be in Holderbank, Switzerland, 80 in L'Isle d'Abeau, France, and the remainder in other global sites in the rest of the world. This represents around 0.25% of LafargeHolcim’s 100,000 staff.

China: The Assets Supervision and Administration Commission has announced the reorganisation of the China National Building Materials Group Corporation (CNBM) and China National Materials Group Corporation (Sinoma). The commission did not provide further details on the merger.

CNBM is the world's major non-metal materials manufacturer, and cement equipment and engineering service provider, with total assets over US$64.5bn. Sinoma is also an industry leader in the construction materials industry. China has started accelerating the reorganisation of its SOEs to improve their competitiveness.

UK: Mechanical power transmission companies David Brown and Santasalo merged on 1 June 2016 to create David Brown Santasalo. Clyde Blowers Capital, an industrial investment firm based in Scotland, owns the business.

The merged company intends to serve markets in commodities, marine, defence, power, industrial and consumer end sectors. Its core business lies in gear engineering and power transmission products. The new company contains more than 1000 employees, seven major manufacturing plants and 23 service centres across six continents.

“David Brown Santasalo covers varied end markets including naval ships, minerals processing and the manufacture of a wide range of pulp and paper products. Across all these markets, our core differentiator is our fundamental capability to design and engineer gear systems for the world’s most demanding applications,” said Thomas Burley, Chief Executive Officer of David Brown Santasalo. He added that the company intends to focus on expanding its sales and service network, enhance its product offering and invest in its manufacturing base around the world.

India: Dalmia Bharat has merged OCL India Limited and Dalmia Cement East Limited ‘Bokaro’ with Odisha Cement Limited. The resulting company will be called OCL India Limited. It has also amalgamated Adhunik Cement with Dalmia Cement (Bharat) Limited (DCBL) and transferred the power assets in Dalmia Cement Bharat Power Ventures Limited to DCBL.

In a statement the Indian cement producer added that the move would simplify its corporate structure leading to significant unrealised benefits. It added that following the consolidation OCL will become the largest Portland slag cement producer in India.

In early March 2016 Dalmia Bharat received approval from the Competition Commission of India to acquire a 15% stake in its subsidiary Dalmia Cement Bharat from private equity firm KKR for over US$181m in a cash and stock deal. After the purchase, Dalmia Cement Bharat became a wholly-owned subsidiary of Dalmia Bharat.

Dalmia Bharat runs cement and power businesses. The group has a presence in southern and eastern India, including the northeast. Dalmia Bharat has a cement production capacity of 25Mt/yr.

India: McNally Bharat Engineering Company has decided to merge itself, its subsidiary McNally Sayaji Engineering and EMC with Kilburn Engineering. Its board of directors will now value the companies to determine the share exchange ratio and draft the scheme of amalgamation, according to Accord Fintech.

McNally Bharat Engineering Company is an engineering company providing turnkey solutions across many industries including cement, material handling, mineral beneficiation, pyroprocessing, power, steel and others. Its subsidiary McNally Sayaji Engineering focuses on crushing and raw mineral processing.

South Korea/Saudi Arabia/Morocco: LafargeHolcim has confirmed plans to divest its assets in South Korea and Saudi Arabia and to enlarge its presence its Morocco. The announcement was made as part of the release of its annual results 2015. The sales form part of the group’s Euro3.2bn divestment program

In Morocco, the group signed an agreement with SNI, its partner in the country, at the same time as the Lafarge-Holcim merger to enlarge its joint-venture by merging Lafarge Ciments Maroc and Holcim Maroc to create LafargeHolcim Maroc. LafargeHolcim and SNI would own a 64.7% stake in the new company once the merger is complete. The group expects to gain a synergy savings of Euro41m over two years from the merger.

LafargeHolcim and SNI also agreed to create a common platform in French-speaking Sub-Saharan Africa. The merger is expected to close in the third quarter of 2016 subject to regulatory authorities’ approval, customary closing conditions and the approval of the shareholders of Lafarge Ciments Maroc and Holcim Maroc.

In South Korea, the group has confirmed that it has signed an agreement with a consortium of private equity funds - Glenwood and Baring Asia - for the divestment of Lafarge Halla Cement in South Korea for Euro427m. The sale is expected to complete in the second quarter of 2016. Lafarge Halla Cement runs one 8.3Mt/yr integrated cement plant, a distribution network across the country and has around 500 employees.

In Saudi Arabia the group has signed an agreement for the sale of the Group’s 25% stake in Al Safwa Cement Company to El-Khayyat Group for total proceeds of Euro120m. This transaction is expected to close in the course of the third quarter of 2016.

Romania: Germany's HeidelbergCement has completed the merger of the three companies it owns in Romania. The three companies that are now merged under HeidelbergCement are Carpatcement, Carpat Beton and Carpat Agregate.

"The merger process takes into account our strategic position in relation to the economic environment, which is to overcome future challenges in order to use our resources to their full potential and to have a more efficient management of costs," said General Manager Florian Aldea.

HeidelbergCement is one of the leading manufacturers of cement, concrete and aggregates in Romania with three cement plants in Tasca, Chiscadaga and in Fieni. It also owns 19 concrete plants, seven quarries and six gravel aggregates units.

Vietnam: Lafarge Vietnam Company has become a unit of Holcim Vietnam Company following the merger between their parent companies.

The merger between Lafarge Vietnam and Holcim Vietnam, which is scheduled for completion in 2015, will help LafargeHolcim optimise its production in the context of oversupply, which has put local cement producers in difficulties, a Holcim Vietnam official has said.

In Vietnam, LafargeHolcim has five cement plants and eight ready-mixed concrete batching plants, with a capacity of 5.2Mt/yr of cement and 1Mm3/yr of concrete. LafargeHolcim will retain its brands of Lafarge and Holcim's products such as Lavilla (Lafarge) and Holcim Power-S (Holcim), according to Nguyen Cong Minh Bao, Head of Holcim Vietnam's Sustainable Development.

Holcim Vietnam presently holds a 26% market share in Vietnam while Lafarge Vietnam takes a 12% share, with their main products being cement, concrete and aggregate.