Holcim, Cemex Europe deal to be examined

EU antitrust regulators will assess a bid by Cemex to acquire Holcim's cement operations in Spain following a request from Spanish authorities, the European Commission said.

Cemex and Holcim announced plans back in August this year to exchange some assets and combine others in Germany, Czech Republic and Spain to boost profit amid tough conditions in the European construction sector.

The Spanish part of the deal involved  Cemex and Holcim combining all their cement, ready-mix and aggregates operations in the country. Cemex would have a  75 per cent controlling interest over the combined operational assets while Holcim would remain a shareholder for at least five years.

"The European Commission has accepted a request from Spain to assess under the EU merger regulation the proposed acquisition of Holcim's cement operations in Spain by rival Cemex," the EU competition authority said in a statement.

"The Commission also concludes that it is the best placed authority to deal with the potential cross-border effects of the transaction," it said.

It said it would ask Cemex to submit its request for approval of the deal to Brussels.

The European Union executive said the Czech competition authority would continue to examine Cemex's takeover of Holcim's business in the Czech Republic.