EU approves HeidelbergCement´s deal to buy Italcementi

EU approves HeidelbergCement´s deal to buy Italcementi

The European Union has approved HeidelbergCement AG´s Gé¼1.67 billion ($1.86 billion) deal to acquire a 45 per cent stake in Italcementi SpA, on the condition that the merged company divests all of the Italian cement-maker´s business in Belgium. The European Commission, the bloc´s antitrust body, said it initially had concerns the post-merger company wouldn´t have faced enough competition from other rivals, leading to higher cement and concrete prices in the EU.

But HeidelbergCement´s commitment to shed Italcementi´s business in Belgium, where the two companies´ activities have ´substantial overlaps´ and would have had a combined market share above 50 per cent, addresses those concerns, the EU added.

´I welcome the proposed commitments as they will ensure that HeidelbergCement´s multibillion euro takeover of Italcementi will not harm effective competition,´ said EU Antitrust Chief Margrethe Vestager.

The deal, announced last July, would create the world´s second-biggest producer of cement and the third-largest in ready-mix concrete, according to HeidelbergCement.

Source: BUSINESS STANDARD

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