The final approvals needed for the takeover of Italcementi by HeidelbergCement have been obtained, as the two companies have reached an agreement with the United States Federal Trade Commission.
This follows European clearance which was obtained earlier this month. The proposed acquisition of Italcementi by HeidelbergCement was announced last year.
The proposed divestment of operations in the US, primarily consisting of Italcementi’s Martinsburg, West Virginia, cement plant and up to 11 terminals, was accepted by the Federal Trade Commission.
Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement, said, “We are very pleased with the positive decision of the Federal Trade Commission. We are now on track to close the acquisition of the 45% stake in Italcementi, which we are planning together with Italmobiliare, for the beginning of July.”
The divestment process for the assets in US has already started and HeidelbergCement said that significant interest had already been seen. Citi is mandated as sell side advisor for the disposal.
The planned full acquisition of Italcementi takes place in two steps. With the approvals of the competition authorities now in place, HeidelbergCement said it would initially acquire a controlling stake of 45% from Italmobiliare, the holding company of the Pesenti family which has run Italcementi.
HeidelbergCement will then propose a public mandatory offer to the remaining shareholders for the acquisition of their shares in return for a cash payment.
HeidelbergCement expects the entire transaction to be completed in the second half of 2016.