Essroc Canada's integration to the HeidelbergCement Goup is approved

The integration Italcementi's business in Canada with the HeidelbergCement Group was formerly approved by the company's board of directors yesterday. Since 1 July 2016 HeidelbergCement Group has been held the majority stake in Italcementi and will take over the entire company following a mandatory takeover bid.

The transaction involves the acquisition by Canadian Lehigh Hanson Materials Ltd (LHM), indirectly owned by HeidelbergCement, of the entire share capital, including ordinary and preference shares, of US-based Essroc Canada ULC (Essroc Canada), which is indirectly owned by Italcementi, through vehicle company Essroc Netherlands Cooperatief UA (New Essroc).

The price which Essroc will receive for the sale of Essroc Canada to LHM, equal to some CAD371m (US$281m), will be paid by assigning to Essroc 42,288 LHM shares of the new issue, or 15.5 per cemnt in LHM share capital, and for the remainder - in cash CAD200,000.