HeidelbergCement and Holcim intend joint control of Cement Australia
HeidelbergCement and Holcim intend to balance their respective interests in Cement Australia and to operate the company as a joint venture. HeidelbergCement plans to acquire from Holcim additional 25% of the share capital of Australia’s largest cement producer via its subsidiary Hanson Australia. After signing the contract, HeidelbergCement and Holcim will each hold a 50% share in the joint venture. Australia’s competition authority (ACCC) and the authority for foreign investments (FIRB) have already approved the transaction. Both parties have agreed not to disclose the purchase price.
“The planned increase of our stake in Cement Australia makes sense for us both from a strategic and an economic standpoint,” said Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “Due to the expected growth of the population and the continued expansion of the mining industry, Australia is a very attractive market. Cement Australia is a highly profitable company and the planned increase in our stake fulfils all our investment criteria. In addition, we would double our cement capacity in the country to 2 million tonnes and strengthen the vertical integration of our building materials business there.”
Cement Australia operates two cement plants and a grinding station in the East and Southeast of Australia and in Tasmania with a total annual cement capacity of 4.2 million tonnes. Furthermore, a new grinding station in Port Kembla with an annual capacity of 1.1 million tonnes of cement will go on stream in 2013. The company has more than 1,000 employees and recorded revenue of approximately AUD 1 billion in 2012.
About HeidelbergCement
HeidelbergCement is one of the largest building materials manufacturers worldwide, as the global market leader in aggregates and with leading positions in cement, concrete, and other downstream activities. The Group employs around 52,000 people at 2,500 locations in more than 40 countries.
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