CEMEX and Holcim in deal to optimize European portfolios
Series of interlinked transactions set to improve strategic footprint of both companies in Europe
CEMEX and Holcim have agreed to conduct a series of interlinked transactions that will improve and optimize the strategic footprint of both organizations in Europe.
Under the terms of the deal, CEMEX will acquire all of Holcim’s assets in the Czech Republic (Holcim Cesko), which include one cement plant (with cement capacity of 1.1 million tonnes and clinker capacity of 0.9 million tonnes), four aggregates quarries and 17 ready-mixed concrete plants. Holcim will continue to serve customers in the Czech Republic from their Rohoznik plant in Slovakia.
At the same time, CEMEX will divest their assets in the western part of Germany to Holcim, which include one cement plant and two grinding mills (total cement capacity of 2.5 million tonnes and clinker capacity of 0.9 million tonnes), one slag granulator, 22 aggregates quarries and 79 ready-mixed concrete plants. These will be combined with Holcim’s existing operations in northern Germany, while CEMEX will maintain their presence in the eastern, northern and southern parts of the country.
Meanwhile, in Spain, CEMEX and Holcim will combine all their cement, ready-mixed concrete and aggregates operations. CEMEX will have a 75% controlling interest over the combined operational assets in this country, while Holcim will hold the remaining 25% shareholding for a period of at least five years.
As part of these interlinked transactions, Holcim will pay CEMEX €70 million in cash. Additionally, the transactions are expected to generate synergies that will result in a recurring improvement in CEMEX’s EBITDA of around €15 million to €23 million, while Holcim expect sustainable additional operating EBITDA of at least €20 million.
Commenting on the agreement, Lorenzo H. Zambrano, chairman and CEO of CEMEX (pictured), said: ‘When finalized, 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.’
Holcim’s CEO, Bernard Fontana, said: ‘This transaction will significantly strengthen our presence in Germany while at the same time giving us the necessary flexibility in Spain. Overall, our footprint in Europe will be considerably strengthened.’
Closing of the transactions is expected in the fourth quarter of 2013, subject to the fulfilment of due diligence and the necessary approvals from the relevant competition authorities.
