The group will acquire all of Holcim’s assets in the Czech Republic, which include one cement plant (cement capacity of 1.1 million tonnes, clinker capacity of 0.9 million tonnes), four aggregates quarries and 17 ready-mix plants.
The Czech Republic is a market with a strong economy and solid prospects and Cemex expects that acquiring these assets should improve its operations in the country and in Central Europe.
Cemex will divest its 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, clinker capacity of 0.9 million tonnes), one slag granulator, 22 aggregates quarries and 79 ready-mix plants. The German market is an attractive one and Cemex will still be present in the eastern, northern and southern part of the country with an important footprint.
In Spain, Cemex and Holcim will combine all their cement, ready-mix and aggregates operations. Cemex will have a 75% controlling interest over the combined operational assets in this country, and the transaction will allow it to better serve the market, which should translate into higher value creation in that country.
As part of these 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 about US$20 million (€15 million) to US$30 million (€22.7 million), beginning to be realised in 2014.
“When finalised, 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,” said Lorenzo H. Zambrano, chairman and CEO of Cemex.
“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,” says Holcim CEO Bernard Fontana.
It is expected that the transactions will be finalised during the fourth quarter of 2013.
BBVA,
