By Peter OBIORA InvestAdvocate
Lagos (INVESTADVOCATE) – Top two (2) world Cement producers, Lafarge and Holcim said on Friday they plan to divest their United States (US) assets as part of their merger deal.
In a merger media release made available to InvestAdvocate, both cement giants say the divestment include Lafarge 1.1MT Davenport cement plant (Iowa) and 7 terminals along the Mississippi River to be sold to Summit Materials (“Summit”) for a total consideration of $450 million [equivalent to €420 million] in cash plus Summit’s Bettendorf, Iowa cement terminal.
Others are the sales of three (3) Holcim terminals in Michigan and Illinois, Holcim Skyway 600kt slag grinding station in Illinois and Holcim Camden 700kt slag grinding station in New Jersey, along with a terminal in Massachusetts.
“Total Lafarge divestment package: $46.5 million 2014 EBITDA and $270 million 2014 net asset value,” LafargeHolcim said.
According to the top two (2) worlds Cement producers, these proposed divestments have been negotiated with the staff of the Federal Trade Commission, and remain subject to review and approval by the Commission.
LafargeHolcim says the divestments will be completed subject to acceptance by the Commission and to the closing of the merger between companies.
“They will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies,” LafargeHolcim added.
The closing of the planned merger is expected in July 2015, aiming to create the most balanced and diversified portfolio in the industry, operating in 90 countries and creating superior value for its stakeholders.
