[HINT..DANGOTE] Why This German Cement Maker Rushed to Buy An Italian Rival
HeidelbergCement rushed to buy control of Italcementi after an African rival also showed interest in the Italian cement maker Reuters reports The report suggest Nigeria’s Dangote Cement is probably that company and had been circling Italcementi but did not make a formal offer. Carl Franklin, head of investor relations at Dangote Group, said the company did […]
HeidelbergCement rushed to buy control of Italcementi after an African rival also showed interest in the Italian cement maker Reuters reports
The report suggest Nigeria’s Dangote Cement is probably that company and had been circling Italcementi but did not make a formal offer.
Carl Franklin, head of investor relations at Dangote Group, said the company did not comment on specific rumours “but as a large company we examine all options for growth”.
Germany’s HeidelbergCement on Tuesday agreed to purchase 45 percent of Italcementi and bid for the rest in a deal that values its smaller Italian rival at 6.7 billion euros ($7.4 billion).
As part of the deal, HeidelbergCement said it would make a mandatory offer for the rest of Italcementi provided its 1.67 billion-euro cash-and-shares bid for a 45 percent stake goes through as planned in 2016.
“Everything was done to close (the deal) quickly because the sector is churning,” the source said. “Dangote Cement also saw a potential for synergies and was looking to strike a deal.”
HeidelbergCement declined to comment on whether it had faced competition from Dangote.
The deal is expected to create the world’s biggest player in aggregates, the No.2 in cement and the third-biggest in ready-mix concrete, allows for synergies that would not have been possible with an African or Indian player, the source added.
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