Holcim and Cemex sign binding agreements on European transactions

Holcim and Cemex sign binding agreements on European transactions
Published: 30 October 2014

Holcim and Cemex have signed binding agreements regarding the series of transactions in Europe originally announced last year. The main scope of the transactions in Germany and the Czech Republic remain unchanged, but the structure in Spain has been adapted with a joint organisation in the country no longer part of the deal.

In accordance with the proposals, first made public on 28 August 2013, Cemex will acquire all of Holcim’s assets in the Czech Republic. In Germany, Holcim will continue the acquisitions of Cemex's operations in the western part of the country – in particular in North Rhine-Westphalia. The transaction includes one cement plant, two grinding stations (total cement capacity of 2.5Mta), one slag granulator, 22 aggregates locations and 79 ready-mix plants. They will be combined with Holcim’s existing Northern German operations.

In Spain, however, the two companies will no longer form a joint organisation as initially planned. Cemex will now acquire Holcim’s 0.85Mta Gador cement plant and its 0.9Mta Yeles cement grinding station. Holcim will keep all its other operations in Spain. The change in parameters reflects the “change in the strategic landscape following the announcement of the proposed merger of Holcim with Lafarge,” the Swiss cement major said in statement.

Due to the changed transaction, Cemex will pay EUR45m in cash to Holcim. Once the transactions are closed, Cemex said it expects a recurring improvement in its EBITDA, including synergies, of about US$20-30m.
These transactions are expected to close during the first quarter of 2015.