TCC Group Holdings’ board has authorised its Dutch subsidiary to pursue the acquisition of Ivano-Frankivskcement (IFCEM) and three related Ukrainian building materials businesses. The proposed purchase of 100 per cent of the companies carries an enterprise value of up to EUR750m (US$857m), subject to adjustment for net debt and working capital.

IFCEM has 4.3Mta of cement capacity and, according to TCC, a share of approximately 36 per cent of Ukraine’s cement market. The other businesses produce roofing materials, gypsum products and dry-mix mortar. IFCEM says the group employs around 2500 people.

TCC sees the acquisition as a way to extend its European cement business eastwards and participate in Ukraine’s eventual reconstruction. IFCEM also sells into neighbouring markets, principally Poland and Romania. TCC said it would introduce its lower-carbon cement expertise to the business, citing the effect of the EU Carbon Border Adjustment Mechanism on export competitiveness.

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The transaction remains subject to regulatory approvals, including in Taiwan and Ukraine. TCC has not announced a completion date.