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Firms cement joint venture
KWM and Ashurst have acted on a joint venture to control Cement Australia, the country’s largest cement producer.
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Firms: King & Wood Mallesons (HeidelbergCement), Ashurst (Holcim)
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Deal: 50/50 joint venture to control Cement Australia, Australia’s largest cement producer.
Area: M&A
Value: Undisclosed
Key players: The KWM team is led by M&A partner Adrian Perkins (pictured).
Deal significance: Under the deal, the companies will balance their interests in the company, with HeidelbergCement purchasing an additional 25 per cent stake in Cement Australia from Holcim via its subsidiary Hanson Australia.
“HeidelbergCement’s expansion here doubles their cement capacity in Australia and reinforces their downstream concrete business operated by subsidiary Hanson Australia,” said Perkins.
“The move positions them to capitalise on the continued expansion of the mining industry, expected population growth and increased demand from Asia.”
The transaction has already been approved by both the ACCC and Foreign Investment Review Board.
HeidelbergCement is the global market leader in aggregates and a prominent player in the fields of cement, concrete and other downstream activities, making it one of the world’s largest manufacturers of building materials.
Cement Australia operates two cement plants and a grinding station in the East and Southeast of Australia and in Tasmania, and a new grinding station in Port Kembla is set to open this year. The company has more than 1000 employees and recorded a turnover of approximately $1 billion in 2012.
