Russian Novoroscement to acquire Inteco’s cement business

Russian Novoroscement to acquire Inteco’s cement business
22 July 2011

Novoroscement, Russia’s second largest cement producer, is considering acquiring two cement plants owned by its local competitor Inteco, 99% of which is owned by Yelena Baturina, Russia’s richest woman and wife of former Moscow city mayor, Yuriy Luzhkov.

The first plant is JSC Atakaytsement, with a capacity estimated at 0.3Mta, while the second is JSC Verkhnebakansky cement plant, which after reconstruction could produce up to 2.3Mta. 
Inteco also had plans to start construction of its third plant in the Tula region with the capacity of 4.6Mta, however due to certain reasons (and in particular the resignation of Luzhkov) this project was postponed.

According to Russian media reports, the sides have already reached an agreement, while the amount of the transaction is expected to reach USD$200m. The deal is expected to be completed by 2012 after the reconstruction of the plants. 
According to Russian Kommersant business paper, at present Novoroscement, owned by Lev Kvetnoy, remains the second largest cement producer in Russia after Eurocement. It operates three plants in the Krasnodar region (Southern Russia), which in 2010 produced 3.9Mt of cement. The company’s revenue for 2009 amounted to RUB7.69bn (USD$215m).

The acquisition of the Inteco plants will allow Novoroscement to become Russia’s largest cement producer and overtake Eurocement, which in 2010 produced 18.9Mt of cement, compared to Novoroscement’s 11Mt (already including with Inteco assets).

Published under Cement News