HeidelbergCement Clears EU Hurdle, Poised for Italcementi Acquisition
The world’s number two cement maker is making steady strides in closing a €3.7 billion deal in a consolidating building materials market. It’s also doing some interesting tinkering in the Caucasus and West Bank.
HeidelbergCement is turning its eyes to Washington in anticipation of an antitrust ruling, perhaps in as soon as two weeks, which is the German-based building materials giant’s next big hurdle in its ongoing effort to acquire Italcementi. The European Commission recently granted approval for the deal in exchange for divestment in what would be the combined firm’s assets in Belgium.
The €3.7 billion ($4.1 billion) cash-and-stock purchase will bolster Heidelberg operations in Italy, France, Canada, the United States and in emerging markets such as Thailand and India. The company expects to wring €400 million ($447 million) in savings out of the combined new enterprise. Analysts say the 150-year-old Bergamo, Italy-based acquisition target, with a market cap of €3.6 billion, possesses a strong research and development operation which would be to the benefit of the new, larger Heidelberg.