HeidelbergCement confirms plan for 55% stake in Italcementi

German cement manufacturer HeidelbergCement has increased its estimate on the synergies that will be created by the acquisition of a stake in Italian peer Italcementi by €100 million to a total of €400 million. It is reported that in particular, Heidelberg expects to cut €115 million of general and administrative costs; €70 million of IT costs and other purchases; €105 million of tax costs, and €110 million of logistics costs. It has also been confirmed that as soon as Heidelberg is given the approval
February 18, 2016 Read time: 2 mins

German cement manufacturer 674 HeidelbergCement has increased its estimate on the synergies that will be created by the acquisition of a stake in Italian peer 726 Italcementi by €100 million to a total of €400 million.

It is reported that in particular, Heidelberg expects to cut €115 million of general and administrative costs; €70 million of IT costs and other purchases; €105 million of tax costs, and €110 million of logistics costs.

It has also been confirmed that as soon as Heidelberg is given the approval by all relevant authorities, it will carry out the acquisition of a 55% stake in Italcementi.

The takeover has already been approved by Kazakhstan, Morocco, Canada and India's anti-trust authorities, while it is still pending the approval of the European Commission and of the US anti-trust authority.

The operation is expected to be finalised by the end of June 2016, and completed by the end of September 2016.

Heidelberg is to be allocated a bridge credit line worth slightly less than €2 billion for the acquisition of Italcementi at a price of €10.6 per share.

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