Holcim Gets EU Antitrust Approval for €1.85 Billion Xella Acquisition
Holcim's Acquisition of Xella: EU Approval and Strategic Implications
By Foo Yun Chee
EU Antitrust Approval and Deal Overview
BRUSSELS, June 12 (Reuters) - World No. 2 cement maker Holcim has secured EU antitrust approval for its €1.85 billion acquisition of German walling systems maker Xella after pledging to sell a Romanian business, the European Commission said on Friday.
Background and Strategic Rationale
The deal, announced in October last year, is part of Holcim's diversification into the growing European refurbishment market worth around 250 billion euros a year.
Divestment Details and Regulatory Response
Zug, Switzerland-headquartered Holcim will divest its plant in Romania which makes a type of building material designed to provide energy-efficient and sustainable solutions for construction projects, confirming a Reuters story last week.
The Commission, which acts as the EU antitrust enforcer, said the divestment allays its concerns.
Reporting Credit
(Reporting by Foo Yun Chee)