16 June 2009
Swiss cement maker Holcim has announced that it is buying the Australian unit of Cemex for $1.64 billion (Dh6bn). It will raise funds for the acquisition through a rights issue.
A senior spokesperson from the company yesterday told Emirates Business that its investments in the region will be limited to a stake in National Cement factory and its operations in Lebanon.
Holcim also said it plans to participate in the planned private placement of Huaxin Cement in China.
When asked if the company plans to invest in the region, the spokesperson said: "At present we are concentrating on the transactions that was announced today and we still have about 24 million tonnes of capacity under construction. But generally if there are interesting opportunities that creates value, we will not hesitate to have a look into it," he said.
Refusing to forecast on the future of the construction industry, he said: "All I can say is that 2009 is going to be a challenging and difficult year."
The company yesterday announced that it will acquire Cemex Australia - a company with countrywide operations in the aggregates, ready-mix concrete and concrete products business - including its 25 per cent interest in Cement Australia, in which Holcim has a 50 percent shareholding.
"This important strategic acquisition enables us to move into the aggregates and concrete business in an attractive mature market. Cemex Australia's most important market positions are located in the continent's densely populated eastern and southeastern states and in the mining belt of Western Australia - all of which are markets among the fastest growing regions in Australia," said the spokesperson. The purchase will be financed entirely with equity.
According to a company statement, the Board of Directors of Holcim has decided, subject to the approval of the necessary Chinese authorities, to fully participate in the planned private placement of Huaxin Cement (China) for up to CNY4bn (Dh2.14bn). Based on Holcim's current stake in Huaxin Cement of 39.9 per cent, this corresponds to an investment of up to CNY1.6bn, also planned to be fully financed with equity.
The board will convene an extraordinary general meeting on July 8, at which the shareholders of Holcim will be asked to approve a capital increase leading to an inflow of funds in the amount of approximately CHF2bn (Dh6.73bn).
Reuters quoting an analyst said the acquisition, which Holcim has secured cheaply, is the Swiss firm's largest for several years.
A company statement yesterday said Cement Australia is the country's largest cement producer and Cemex Australia is present in all important markets.
The deal will also generate much-needed cash for Cemex, which has been struggling to refinance $14.5bn of debt that falls due by the end of 2011.
Swiss cement maker Holcim has announced that it is buying the Australian unit of Cemex for $1.64 billion (Dh6bn). It will raise funds for the acquisition through a rights issue.
A senior spokesperson from the company yesterday told Emirates Business that its investments in the region will be limited to a stake in National Cement factory and its operations in Lebanon.
Holcim also said it plans to participate in the planned private placement of Huaxin Cement in China.
When asked if the company plans to invest in the region, the spokesperson said: "At present we are concentrating on the transactions that was announced today and we still have about 24 million tonnes of capacity under construction. But generally if there are interesting opportunities that creates value, we will not hesitate to have a look into it," he said.
Refusing to forecast on the future of the construction industry, he said: "All I can say is that 2009 is going to be a challenging and difficult year."
The company yesterday announced that it will acquire Cemex Australia - a company with countrywide operations in the aggregates, ready-mix concrete and concrete products business - including its 25 per cent interest in Cement Australia, in which Holcim has a 50 percent shareholding.
"This important strategic acquisition enables us to move into the aggregates and concrete business in an attractive mature market. Cemex Australia's most important market positions are located in the continent's densely populated eastern and southeastern states and in the mining belt of Western Australia - all of which are markets among the fastest growing regions in Australia," said the spokesperson. The purchase will be financed entirely with equity.
According to a company statement, the Board of Directors of Holcim has decided, subject to the approval of the necessary Chinese authorities, to fully participate in the planned private placement of Huaxin Cement (China) for up to CNY4bn (Dh2.14bn). Based on Holcim's current stake in Huaxin Cement of 39.9 per cent, this corresponds to an investment of up to CNY1.6bn, also planned to be fully financed with equity.
The board will convene an extraordinary general meeting on July 8, at which the shareholders of Holcim will be asked to approve a capital increase leading to an inflow of funds in the amount of approximately CHF2bn (Dh6.73bn).
Reuters quoting an analyst said the acquisition, which Holcim has secured cheaply, is the Swiss firm's largest for several years.
A company statement yesterday said Cement Australia is the country's largest cement producer and Cemex Australia is present in all important markets.
The deal will also generate much-needed cash for Cemex, which has been struggling to refinance $14.5bn of debt that falls due by the end of 2011.
By Joseph George
© Emirates Business 24/7 2009
