HeidelbergCement to buy part of Italcementi

HeidelbergCement announced Wednesday that it and Italmobolire have entered a purchase agreement for 45 percent of the latter's subsidiary Italcementi.

According to HeidelbergCement, this acquisition will allow the company to expand its growth with the addition of strategic geographical area to the current operational space of the company. Italcementi operates in 22 countries and maintains strong positions within markets including Canada, France, Italy and the U.S. They also have emerging market positions within Egypt, Indian, Morocco and Thailand.

With this acquisition, the merged company will become a global leader in aggregates and one of the largest producers of ready-mix concrete.

Following this initial purchase — which will be for approximately $1.84 billion or approximately $11.71 per share — HeidelbergCement plans to make a mandatory public takeover offer to other shareholders of the company. This transaction is expected to be completed in 2016 and is pending competition authorities' approval within the European Union and the U.S.

The company reports that Italcementi generated approximately $4.5 billion in revenues over the course of 2014 with $716.7 million in earnings before interest, taxes and amortization.