Turkish exit, Russian entry

By Chris Sleight04 April 2008

Italcementi has agreed to sell its Turkish business unit, the Set Group, to Sibirskiy Cement for € 600 million. The transaction with Russia's no. 2 cement producer will take the form of € 400 million in cash and € 200 million in Sibirskiy Cement shares.

Italcementi says this deal paves the way for a strategic alliance with Sibirskiy, allowing it to indirectly enter the fast growing Russian market through its equity participation in the company. Following the deal, Italcementi will own 5,4% of Sibirskiy.

Italcementi says it is exploring further cooperation possibilities with Sibirskiy in Russia and Central Asia.

Italcementi has been active in Turkey since 1989, and the Set Group businesses comprise four cement plants, one grinding centre and 18 ready-mixed concrete facilities. Last year the business generated revenues of € 260 million.

The deal is subject to various approvals, including that of Turkey's antitrust authorities.

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