King & Wood Mallesons is advising HeidelbergCement on its agreement with Holcim to enter into a 50/50 joint venture to control Cement Australia, Australia’s largest cement producer.
Under the deal, the companies will balance their interests in the company, with HeidelbergCement purchasing an additional 25% stake in Cement Australia from Holcim via its subsidiary Hanson Australia.
The King & Wood Mallesons team is led by M&A Partner Adrian Perkins.
“We are pleased to be advising HeidelbergCement on this strategic investment. HeidelbergCement’s expansion here doubles their cement capacity in Australia and reinforces their downstream concrete business operated by subsidiary Hanson Australia. The move positions them to capitalise on the continued expansion of the mining industry, expected population growth and increased demand from Asia” said Perkins.
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 set to open this year. The company has more than 1,000 employees and recorded a turnover of approximately AUD 1bn in 2012.
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