China Resources Cement Holdings Ltd has inked a framework agreement with Universal Cement Corp to acquire its six affiliate cement companies for a total of HK$820m.
After the purchases, the Hong Kong-listed firm will own a clinker production line, three cement lines and two concrete lines, which are all located in Huizhou, Guangdong Province and are designed to produce 992,000t of clinker, 3.45Mt of cement and 1.2Mm3 of concrete per year.
In addition, China Resources Cement will add a concrete line with annual output capacity of 1.1Mm3 in Ningbo, Zhejiang Province.
Reportedly, China Resources Cement has said that it will purchase a 72% stake in Guardwise Investments to own a cement production line that is under construction in Shanxi Province. The company will spend up to RMB1.52bn to acquire the target company.