HeidelbergCement has increased its holding in the Russian cement company CJSC Construction Materials from 51% to 100%. The parties have agreed not to disclose the purchase price. The purchase of the stake is included in the HeidelbergCement capital expenditure plan. CJSC Construction Materials, located in Sterlitamak, is the market leader in the Russian Republic of Bashkortostan and one of the leading cement producers in the Wolga area with about 760 employees.
HeidelbergCement has increased its holding in the Russian cement company CJSC Construction Materials from 51% to 100%. The parties have agreed not to disclose the purchase price.
The purchase of the stake is included in the HeidelbergCement capital expenditure plan.
CJSC Construction Materials, located in Sterlitamak, is the market leader in the Russian Republic of Bashkortostan and one of the leading cement producers in the Wolga area with about 760 employees.
The company has a total annual cement capacity of 1.8 million tonnes and operates among others a dry process kiln meeting the highest efficiency and environmental standards in Europe.
HeidelbergCement acquired a 51% stake in the Russian cement company in the fourth quarter of 2010.
“The purchasing of the remaining 49% in CJSC is another good example of our strategy of low risk bolt-on acquisitions,” says Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement. “Bashkortostan is one of the richest Russian republics with mineral oil reserves and a growing industrial landscape. CJSC is a highly profitable company and the increase in our stake to 100% fulfils all our investment criteria. In addition, the minority interests in the group profit are reduced to the benefit of the HeidelbergCement shareholders.”
