Italcementi completes Cementir Italia acquisition

HeidelbergCement subsidiary Italcementi has completed the acquisition of Cementir Italia. All conditions for the closing of the transaction have been fulfilled following the approval by the Italian competition authority.

"With the acquisition of Cementir Italia we significantly improve our nationwide presence in Italy," explains Dr Bernd Scheifele, chairman of the Managing Board of HeidelbergCement. "For Italcementi, the acquisition is a unique opportunity to grow and consolidate its position in the Italian market. We see strong recovery potential in southern Europe and especially in Italy over the coming years. With this acquisition we are very well positioned to create value through synergies, efficient processes, and the offer of high-quality and innovative products. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns."

The Italian competition authority gave clearance to the acquisition in November subject to certain conditions, including the divestment of some plants. Italcementi’s decision on this topic will be defined in the next five months.

On 19 September 2017, Italcementi and Cementir Holding entered into an agreement to buy Cementir Italia, including the fully-controlled subsidiaries Cementir Sacci and Betontir. Cementir Italia's business includes five integrated cement plants and two cement grinding units with a total cement capacity of 5.5Mta, as well as a network of terminals and concrete plants, all operating in Italy. Minimum annual run-rate cost synergies of EUR25m are expected to be achieved by 2020, says HeidelbergCement. The transaction has an enterprise value of EUR315m.