BBMG Corporation, said it plans to pay about US$74m to Lafarge China Overseas Holding Co Ltd to purchase shares in two cement makers and one concrete company.
BBMG said it will acquire up 65 per cent of Beijing Xingfa Cement Co Ltd, 70 per cent of Beijing Shunfa Lafarge Cement Co Ltd and 76.72 per cent of Beijing Yicheng Lafarge Concrete Co Ltd. Shares in the three are all owned by Lafarge China Overseas Holding.
The three companies own two new dry-process cement plants and one concrete plant in Beijing.
The move is expected to consolidate BBMG’s market presence in Beijing and the surrounding areas. BBMG said it would increase its production capacity of cement and concrete by 1.5Mt and 0.3Mm3 respectively.