Bulgaria’s anti-trust regulator said on Thursday it gave the green light to the local unit of global cement maker Holcim to acquire a majority stake in building materials manufacturer ZSK Kremikovtzi.
ZSK Kremikovtzi’s sole valuable asset is a gravel pit near the Bulgarian capital Sofia, Holcim Bulgaria’s CEO Todor Kostov said. He added Holcim Bulgaria could extract between 400,000 and 500,000t of gravel annually from the career, if there was demand from the road construction sector in the country.
Bulgaria, which joined the European Union in January, has to upgrade its outdated road infrastructure to additionally boost the growth of its economy. The country plans to call tenders for the construction of around 100 kilometres of motorways this year. Bulgaria will partly finance its infrastructure upgrades through funds from the EU. The Black Sea state will have access to 11 billion euro in cohesion and structural funds from the bloc through 2013.
Holcim has two cement factories in Bulgaria and ranks the second-largest cement producer the country after Italy’s Italcementi.Holcim also runs two sand making factories and concrete mixtures plant in the the country.
The company is also present in Bulgaria’s neighbours Serbia and Romania, and in Croatia.