CNBM buys parent’s cement biz at US$851m

CNBM buys parent’s cement biz at US$851m
Published: 01 July 2009

China National Building Material (CNBM) has agreed to acquire from its controlling shareholder equity interests in certain companies which are engaged in cement production and sale. The total consideration payable in cash for the acquisition is RMB750m (US$850.687m).

The equity interests are: 45% equity interest in Sanshi Hede; 38% equity interest in Shaoxing Sanshi; 40% equity interest in Jiande Sanshi; 49% equity interest in Tonglu Sanshi; 46% equity interest in Sanshi Jiaxing; 38% equity interest in Sanshi Changxing; 67.46% equity interest in Sanshi Cement; 6.75% equity interest in Sanshi Wutong; 51% equity interest in Sanshi Xiaopu; and 44.8% equity interest in Fuyang Sanshi.

CNBM believes that the acquisition will enable the group to further develop and expand its cement business in the South East Region and helps facilitate the synergy among various cement companies of the group and will increase the company’s cement and clinker production capacity.