Italcementi gets approval to take over Suez Cement

Italcementi gets approval to take over Suez Cement
08 March 2005


The Egyptian government has accepted an offer from Italian cement group Italcementi to acquire a majority shares of Suez Cement, Egypt’s largest cement group. Through its French unit, Ciments Francais, Italcementi will increase its stake in Suez from 34.1 to 54 per cent for $153m, becoming entitled to appoint seven of the Egyptian group’s 13 board members. Suez Cement had a domestic market share of 22 per cent in 2003, with operating profit of $46m on sales of $186m. 

The government had vetoed an initial offer from Italcementi last December, on concerns over job security at the company and uncertainty over privatisation plans. Italcementi refused a compromise offer to increase its stake to 39.9 per cent, increasing the value of its offer instead.
 

Published under Cement News