HeidelbergCement has agreed the sale of its concrete, aggregates and asphalt-based Israeli operations to Mashav Initiating & Development, which forms part of the domestic conglomerate IDB Group. The deal, which has yet to be finalised, is worth in the region of €120m.
The business consists of 26 batching plants, three quarries and two asphalt plants and came to HeidelbergCement with Hanson, which in turn had acquired it when it bought Pioneer Concrete of Australia.
The deal with IDB, for which cement represent around 8% of turnover, must be seen as a blow to Cemex, which is also looking to divest of peripheral businesses in order to reduce debt, just like HeidelbergCement.
With Mashav now being able to build an integrated business, it will make the Cemex business look less attractive to a potential purchaser.