China National Building Material plans to buy stakes in 10 China cement firms

China National Building Material plans to buy stakes in 10 China cement firms
Published: 07 August 2007

China National Building Material Co Ltd (CNBM) said it has signed letters of intent (LOI) to acquire stakes in 10 cement companies in China. Under the LOI, CNBM will acquire 80% stakes in Zhonglida Group Holding Co. Ltd., Zhejiang Lima Cement Co. Ltd., Zhejiang Yaya Cement Co., Zhejiang Shenhe Cement Co. and Zhejiang Tongxing Cement Co., 100% stakes in Anhui Feida Cement Co. and Zhejiang Tianji Cement Co. and at least 50% stake in Hejiashan Cement Co. Ltd. These eight cement companies can produce a total of 18Mta. The company also plans to acquire 95% stakes in Changxing Coal Mine Zhongsheng Building Material Co. and Changxing Xiaopu Zhongsheng Cement Co. Meanwhile, CNBM also entered into framework agreement with Shenzhen-listed Jiangxi Wannianqing Cement Co. (Jiangxi Cement) to set up a joint venture for development of the company’s regional cement business. Under the agreement, Jiangxi Cement will inject Jiangxi Ruijin Cement Co.