Takeover bid for Cementos Lemona

Takeover bid for Cementos Lemona
Published: 06 December 2005

A unit of Spain’s Fomento de Construcciones & Contratas SA has launched a takeover bid of Euro 248.3m a share, for mid-size cement producer Cementos Lemona SA. The unit, Cementos Portland Valderrivas SA, which already has a 30.7 per cent stake in Cementos Lemona, said it has reached a deal with the second-biggest stake holder in Lemona, Cimentos de Portugal SGPS, to buy its 19.3 per cent stake. As that will bring it past the 50 per cent mark, under Spanish law it is obliged to offer to buy 100 per cent of Cementos Lemona at the same price, 32 euros a share. FCC has a 67 per cent stake in Cementos Portland. The building giant has predicted a large acquisition before the end of the year, and has said it could invest about 3 billion euros with a special focus on cement and services. Cementos Portland said its bid is in line with its international strategy to expand in the US. Cementos Portland and Cementos Lemona each have a 50 per cent stake in CDN USA, a Maine cement company (Dragon Cement).