MILAN (Reuters) - Italy’s third-largest cement maker Cementir Holding (CEMI.MI) has agreed to sell its domestic assets to Italcementi, owned by Germany’s HeidelbergCement (HEIG.DE), it said on Tuesday.
Cementir, controlled by the Caltagirone family, said the deal had an enterprise value of 315 million euros ($377 million).
The sale will reduce Cementir’s net debt, enabling it “to take opportunities that could arise in the future”, CEO Francesco Caltagirone said in a statement.
HeidelbergCement, the world’s biggest maker of aggregates used in concrete and the second-biggest maker of cement, said it expects the purchase to generate at least 25 million euros in annual cost savings by 2020.
“We see strong recovery potential in Southern Europe and especially in Italy over the coming years,” the German company’s CEO Bernd Scheifele said. “With this acquisition, we are very well positioned to create value.”
The company said that net investments for this year and next will remain unaffected by the acquisition and that it plans to sell non-core assets to offset the purchase.
($1 = 0.8351 euros)
Reporting by Francesca Landini; Additional reporting by Andreas Cremer in Berlin; Editing by Gavin Jones and David Goodman