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Holcim to acquire CEMEX Australia

HOLCIM Group are to acquire CEMEX’s Australian operations for approximately A$2.02 billion (£975 million), subject to the fulfilment of due diligence and regulatory approvals within a six-month period.

The assets to be divested by CEMEX comprise 249 ready-mix concrete plants, 83 aggregates quarries and 16 concrete pipe and products plants located throughout Australia. CEMEX acquired these operations from Rinker two years ago in a deal worth US$ 15.3 billion.

In 2008, CEMEX Australia generated revenues and EBITDA of approximately A$1.86 billion (£905 million) and A$313 million (£152 million) respectively.

The acquisition announced this week also includes CEMEX’s 25% stake in Cement Australia, a company in which Holcim already owns a 50% stake. Its assets include four cement plants and one grinding mill, with an annual production capacity of 5.1 million tons of cement.

In 2008, Cement Australia posted sales of approximately A$995 million (£484 million) and an EBITDA of approximately A$196 million (£95 million).

Holcim say the combination of these two companies will allow them to include Australia in their strategy of expanding the group’s aggregates and ready-mixed concrete business in mature markets.

For CEMEX, the divestment forms part of the company’s overall strategy to improve its financial flexibility, which includes: implementation of US$900 million in recurrent cost savings; rationalization of capital expenditures; and a reduction of total debt.

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