Cemex bolsters its European presence via Holcim deal
Cemex has reached an agreement to acquire some of Holcim's assets for 70 million euros, a move aimed at strengthening the building materials company's footprint in Europe.
“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,” said Lorenzo H. Zambrano, Chairman and CEO of Cemex.
Specifically, Cemex is set to acquire all of Holcim's assets in the Czech Republic, including a cement plant, four aggregates quarries and 17 ready-mix plants.
In Germany, Cemex is divesting its assets in the western part of the country to Holcim, including a cement plant, two grinding mills, one slag granulator, 22 aggregates quarries and 79 ready-mix plants.
Cemex and Holcim will combine all operations in Spain, with Cemex maintaining a 75% controlling interest over the combined assets.
All together, the transactions are expected to fuels gains in Cemex's EBITDA of roughly $20-30 million. They are not final and are subject to the fulfillment of various conditions and due diligence. The company expects to finalize the deal in the fourth quarter of this year.