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HeidelbergCement restart sale of activities in Israel

IT has been announced that HeidelbergCement are to restart the sale of their activities in Israel.

The move follows an indication by antitrust authorities in Israel that they would oppose the originally intended sale to Mashav-Initiating and Development Ltd.

The two companies terminated the original share purchase and sale agreement they had signed in summer 2009 and the merger application was withdrawn.

HeidelbergCement will receive NIS22.5 million (€4.2 million) to compensate for losses due to the cancellation of the deal.

HeidelbergCement say they are now evaluating various options for their business in Israel, as the company continues to focus on its divestment programme of non-strategic business units to further reduce debts.


The company has already reduced its net debt by more than €3 billion in the last 12 months to a level below €9 billion at the end of September 2009.

According to HeidelbergCement, the main contributors to this development were the strict focus on cash flow, successful disposals, and the capital increase finalized in October 2009.

In addition, the company has issued bonds with a total issuance volume of €2.5 billion in order to further significantly reduce its bank debt.

 
 

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