Holcim and CEMEX sign binding agreements

Companies agree on adapted parameters to their series of transactions in Europe

HOLCIM and CEMEX have agreed on adapted parameters to their series of transactions in Europe. In Germany and the Czech Republic, the scope of the transaction remains unchanged, meaning that Holcim will acquire CEMEX’s operations in western Germany, while CEMEX will take over Holcim’s business in the Czech Republic, as previously announced.

However, in Spain the two companies will no longer form a joint organization as initially planned. Instead, CEMEX will purchase Holcim’s Gador cement plant and Yeles grinding station, with a total of 1.75 million tonnes of cement capacity, while Holcim will keep their remaining operations in the country, representing 2.2 million tonnes of cement capacity, as well as their aggregates and ready-mixed concrete positions.

Due to the amended transaction, CEMEX will pay Holcim €45 million in cash. As a result of these changes, Holcim expect sustainable additional operating EBITDA of at least €10 million on a yearly basis after the closing of the deal.

Both companies say the change of parameters reflects the change in the strategic landscape following the announcement of the proposed merger of Holcim with Lafarge, and that as a result, Holcim and CEMEX will remain competitors in Spain and Czech Republic.

The transactions are expected to close during the first quarter of 2015.