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Holcim adjusts their European portfolio


August 28, 2013
By Holcim

August 28, 2013, Germany – Holcim today announces a series
of interlinked transactions to be undertaken in conjunction with Cemex. They
will lead to a further optimization of the Group’s European footprint and allow
it to adapt to the new economic realities. Holcim expects sustainable
additional operating EBITDA of at least EUR 20 million as a result of these
transactions.

August 28, 2013, Germany – Holcim today announces a series
of interlinked transactions to be undertaken in conjunction with Cemex. They
will lead to a further optimization of the Group’s European footprint and allow
it to adapt to the new economic realities. Holcim expects sustainable
additional operating EBITDA of at least EUR 20 million as a result of these
transactions.

 

In Germany, Holcim will purchase operations in the western
part of the country – in particular in North Rhine-Westphalia, one of the
country’s most prosperous areas. The transaction includes one cement plant, two
grinding stations (total cement capacity of 2.5 million tonnes), one slag
granulator, 22 aggregates locations and 79 ready-mix plants. They will be
combined with Holcim’s existing Northern German operations.

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Germany is a market with a strong economy and solid
perspectives where Holcim wants to increase its footprint. This move will allow
the Group to better connect its operations in Northern Germany and also in
France Benelux and is expected to yield synergies in the supply chain.

 

Cemex will take over Holcim Česko. Those operations include
one cement plant (cement capacity 1.1 million tonnes), four aggregates locations
and 17 ready-mix plants. Holcim will continue to serve customers in the Czech
Republic from the Rohoznik plant in Slovakia.

 

In Spain, Cemex and Holcim will combine their operations in
cement, ready-mix and aggregates. Holcim will hold a shareholding of 25 percent
of the combined entity. This combination will enable the Group to add value to
its Spanish business and to benefit from synergies. Holcim will remain
shareholder for at least five years.

 

As part of the interlinked transactions, Holcim will pay
Cemex EUR 70 million in cash.

 

"This transaction will significantly strengthen our presence
in Germany while at the same time giving us the necessary flexibility in
Spain," says CEO Bernard Fontana. "Overall, our footprint in Europe will be
considerably strengthened."

 

Filing with the relevant authorities is planned for the
coming days. The closing of the transaction, which is foreseen in the fourth
quarter of 2013, is contingent on the outcome of the due diligence process and
the necessary approvals by the authorities.

 


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