Ciments Francais calls Turkish deal off

Ciments Francais calls Turkish deal off
Published: 03 November 2008

Ciments Français has withdrawn from the negotiations to sell its Turkish Set Group operations to OJSC Holding Company Sibirskiy Cement. The company attributed the move to the failure to reach an acceptable solution after several days of negotiations to achieve a new structure with similar terms and conditions.

Earlier in the year, Ciments Français’ parent company Italcementi announced the sale of the Turkish operations to Sibirskiy Cement for €600m, consisting of €400m cash and the remainder in Sibirskiy shares, giving Italcementi a 5.4 per cent stake in the Russian cement maker. Under the original agreement, the parties agreed to close the deal no later than four months from the signing with Sibirskiy Cement having the option to extend the deadline for two months. As the closing of the share purchase agreement did not occur, Ciments Français terminated the agreement.