German cement manufacturer HeidelbergCement has increased its estimate on the synergies that will be created by the acquisition of a stake in Italian peer Italcementi by €100 million to a total of €400 million. It is reported that in particular, Heidelberg expects to cut €115 million of general and administrative costs; €70 million of IT costs and other purchases; €105 million of tax costs, and €110 million of logistics costs. It has also been confirmed that as soon as Heidelberg is given the approval
German cement manufacturer HeidelbergCement has increased its estimate on the synergies that will be created by the acquisition of a stake in Italian peer Italcementi by €100 million to a total of €400 million.
It is reported that in particular, Heidelberg expects to cut €115 million of general and administrative costs; €70 million of IT costs and other purchases; €105 million of tax costs, and €110 million of logistics costs.
It has also been confirmed that as soon as Heidelberg is given the approval by all relevant authorities, it will carry out the acquisition of a 55% stake in Italcementi.
The takeover has already been approved by Kazakhstan, Morocco, Canada and India’s anti-trust authorities, while it is still pending the approval of the European Commission and of the US anti-trust authority.
The operation is expected to be finalised by the end of June 2016, and completed by the end of September 2016.
Heidelberg is to be allocated a bridge credit line worth slightly less than €2 billion for the acquisition of Italcementi at a price of €10.6 per share.
