Holcim and Cemex sign binding agreements on their series of transactions

• Unconditional approval by all relevant competition authorities
• Unchanged scope of the transactions in Germany and Czech Republic
• Structure in Spain adapted; two cement operations to be taken over by Cemex

Holcim and Cemex today announce that they 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.

In Spain the two companies will no longer form a joint organization as initially planned and communicated. 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 its remaining operations in Spain, representing 2.2 million tonnes of cement capacity, as well as its aggregates and ready-mix positions.

In Germany, Holcim will continue the acquisitions of operations in the western part of the country - in particular in North Rhine-Westphalia, one of the country’s most prosperous areas. The transaction includes one cement plant, two grinding stations (total cement capacity of 2.5 million tonnes), one slag granulator, 22 aggregates locations and 79 ready-mix plants. They will be combined with Holcim’s existing Northern German operations.

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

This change of parameters reflects the change in the strategic landscape following the announcement of the proposed merger of Holcim with Lafarge. Hence Holcim and Cemex will remain competitors in Spain and Czech Republic. In Germany, Holcim aims to optimize its portfolio by better connecting its operations in Northern Germany and the wider region.

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

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Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone, gravel, and sand), as well as further activities such as ready-mix concrete and asphalt including services. The Group has majority and minority holdings in around 70 countries across all continents.
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