HeidelbergCement to sell assets in Belgium

Belgian assets to be sold to Cementir Holding to address competition concerns over Italcementi acquisition

HeidelbergCement, through their subsidiary Ciments Français SAS, have entered into an agreement with Aalborg Portland Holding A/S, a subsidiary indirectly 100% controlled by Cementir Holding, to sell operations in Belgium, primarily consisting of Italcementi’s Belgian subsidiary Compagnie des Ciments Belges SA (CCB).

Cementir Holding are a multinational group who produce and distribute grey and white cement, ready-mixed concrete, aggregates and concrete products. Through their subsidiaries Aalborg Portland, Cimentas and Cementir Italia, they operate in 16 countries across five continents.

The disposal was committed to the European Commission in order to address competition concerns caused by the Italcementi acquisition and the agreement is subject to the approval of the Commission.

The transaction has an enterprise value of €312 million on a cash and debt-free basis. Subject to the satisfaction of customary closing conditions, HeidelbergCement expect to complete the transaction in the second half of 2016.

‘With the disposal of the Belgium assets we fulfil the obligation of the European Commission and improve the net financial position of HeidelbergCement after the acquisition of the 45% share in Italcementi,’ said Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement.

‘We are well on track to reach our target of at least €1 billion of proceeds from disposals.’