LafargeHolcim does not expect to be bidding for BASF’s construction chemicals business, according to CEO, Jan Jenisch.
Following the divestment of some of its businesses and using the proceeds to pay down debt, the cement producer is more likely to look at smaller transactions and investment in its existing operations, Mr Jenisch said. "It's not like we have a couple of billions we want to throw at anyone. We are quite happy to have this new solid balance sheet, and have no plans to go back to big debt," he said. "A big acquisition would have to tick a lot of boxes, and that is looking unlikely at the moment," he added.
The company’s priority would be to keep the company's debt below the level of two times its operating profit, a target it is on course to reach this year.
While BASF’s construction chemicals business was an attractive opportunity, the deal was complex. Analysts estimate the transaction could be worth up to EUR3bn (UD$3.3bn). "It is a difficult transaction. BASF announced the divestment a year ago. It is not an easy transaction and I like easy transactions," Mr Jenisch said.
