HeidelbergCement looking to shed assets

HeidelbergCement is reportedly looking to sell off its US and British construction materials business this year in a bid to position itself for some assets that may be put on the block as part of the Lafarge Holcim merger, a source with knowledge of the company's plan told Reuters.

The German cement major had said it can wait to get the best price for the business in the US and Britain, which makes mainly bricks, concrete pipes and roofing tiles and is worth at least EUR1bn.

HeidelbergCement has previously stated that its priority is debt reduction and a refocus on core products, but it has also hinted it may seize opportunities that may emerge from the Lafarge Holcim tie up.

"The Lafarge-Holcim merger could speed up Heidelberg's asset disposal plans because Heidelberg would then be able to use its proceeds to buy some of the stuff that Lafarge-Holcim will divest," the source told Reuters.

The company is believed to be in talks with a number of banks with a view to putting the business up for sale in the next few months. It is likely to sell the building materials business by the end of the year, the source added.