BUSINESS HIGHLIGHTS
SPAIN
Holcim/Cemex deal
examined
Proposed merger of cement operations in Spain to
be investigated by European Commission.
A
plan by Holcim and Cemex to combine their operations in Spain, with
25% owned by Holcim and 75% by Cemex, is to be investigated by
the European Commission.
Following a request by Spain, the Commission will assess the proposed
deal under EU merger regulation. It said the transaction threatened to
impact competition in the Spanish cement, concrete and aggregates markets,
and added that it would also assess the potential cross-border effects of the
transaction.
In a linked transaction, Holcim proposes to acquire a number of Cemex
assets in Germany, France and the Netherlands. Meanwhile Holcim will take
over Cemex assets in Western Germany in exchange for its operations in the
Czech Republic and € 70 million (US$ 96.5 million) in cash.
The Commission said Cemex’s acquisitions oin the Czech Republic did
not meet the turnover thresholds set by EU merger regulation. The Czech
Republic did not join the request submitted by Spain, but the Commission
said it would continue to examine this part of the deal.
GLOBAL
Revised outlook
Caterpillar has revised its 2013
outlook on the back of a sharp fall
in third quarter revenues and profit.
It now expects full-year sales and
revenues to be about US$ 55 billion,
with profit per share of about US$
5.50. This compares to its previous
full-year revenue outlook of between
US$ 56 billion and US$ 58 billion,
with profit per share of US$ 6.50.
Caterpillar forecast sales within +/-
5% of this year’s total for 2014.
UK
Nuclear go-ahead
The first new nuclear power station
to be built in the UK for nearly 20
years looks set to go ahead, with
contractors including Costain,
Bouygues and Laing O’Rourke in
contention. The UK Government
and French energy firm EDF
Group have reached commercial
agreement on the UK£ 16 billion
(US$ 25.8 billion) Hinkley Point
C development in Somerset. The
main construction contract is valued
at over UK£ 2 billion (US$ 3.2
billion).
CANADA
Asset sale
SNC-Lavalin is looking for to sell
an unspecified stake in its AltaLink
subsidiary, an electricity transmission
company based in the Canadian
province of Alberta. AltaLink owns
more than half of Alberta, Canada’s,
transmission grid and serves 85% of
its population. It reported revenues
of CA$ 407 million (US$ 395
million) for 2012.
US
Quarry royalty
Aggregates
producer
Vulcan
Materials Company has sold an
interest in future production at
four quarries in Atlanta, Georgia to
Plum Creek Timber Company. The
transaction will see Vulcan receive
US$ 154 million in exchange for
a percentage royalty interest in
232 million tonnes of aggregate
production over 25 years.
VALUE OF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
Australian Dollar
AU$
0.47 0.594 5.85 0.697 59.0
94
12.50 30.5
3.61
9.40
1022 0.859 0.962
Brazilian Real
BRL
2.12
0.281 2.76 0.330 27.9
44.3
5.91
14.4
1.70
4.45
483 0.406 0.455
British Pound
UK£
1.68
3.56
9.8
1.17
99.4
158
21.0
51.3
6.07
15.8
1719 1.44
1.62
Chinese Yuan
CNY
0.171 0.362 0.102
0.119 10.10 16.0
2.14
5.21 0.617 1.609
175 0.147 0.164
Euro
€
1.43
3.03
0.85
8.39
84.7
134
17.9
43.7
5.17 13.49 1466 1.23
1.38
Indian Rupee
INR
0.017 0.036 0.010 0.099 0.012
1.6
0.212 0.516 0.0611 0.159 17.3 0.0145 0.0163
Japanese Yen
YEN
0.011 0.023 0.006 0.062 0.007 0.630
0.1335 0.325 0.0385 0.1004 10.9 0.0092 0.0103
Mexican Peso
MXN
0.080 0.169 0.048 0.468 0.056 4.72
7.49
2.44 0.288 0.752
82
0.069 0.0769
Russian Ruble
RUR
0.033 0.069 0.019 0.192 0.023 1.94
3.07 0.410
0.118 0.309 33.5 0.0282 0.0315
Saudi Riyal
SAR
0.277 0.587 0.165 1.621 0.193 16.373 25.973 3.467 8.453
2.61
283 0.238 0.267
South African Rand ZAR
0.106 0.225 0.063 0.622 0.074 6.278 9.959 1.329 3.241 0.383
109 0.091 0.102
South Korean Won KRW
0.0010 0.0021 0.0006 0.0057 0.0007 0.0578 0.0917 0.0122 0.0298 0.0035 0.0092
0.00084 0.0009
Swiss Franc
CHF
1.16
2.46
0.69
6.81
0.81 68.76 109.07 14.56 35.50 4.20 10.95 1190
1.120
US Dollar
US$
1.04
2.2
0.618 6.08 0.725 61.4
97.4
13
31.7
3.75
9.78 1062.5 0.893
For example US$ 1 = AU$ 1.04
Exchange rates: October 2013
LATIN AMERICA
Yanmar has
acquired a 6.26% stake in Manitou
and the two manufacturers will cross-
distribute products in Latin America.
The agreement will mirror a similar
North American one signed by the two
companies in January last year.
SPAIN
Microsoft co-founder Bill
Gates is behind the purchase of a 6%
stake in Spanish contractor FCC.
The deal is worth
€
114 million (US$
157 million), and makes the Bill Gates
Fund the second largest shareholder
in the company after heiress and
philanthropist Esther Koplowitz.
INDIA
Contractor Larsen &
Toubro reported a +10% increase
in revenues for the quarter ended
September 30, 2013, at INR 14,648
crore (US$ 2.38 billion). Revenues
for the six months from April to
September stood at INR 27,352 crore
(US$ 4.44 billion), up +8% year-on-
year. International orders rose by
+43% on the back of a number of
large projects in the Middle East.
NETHERLANDS
Hitachi has
completed a
€
10 million (US$
13.8 million) reorganisation of its
mini excavator plant in Oosterhout,
the Netherlands. The facility
now integrates the assembly
and manufacture of Zaxis-5 mini
excavators along with special
application machines, a move the
company said will increase efficiency,
reduce costs and provide more
reliable delivery times.
international
construction
november 2013
BUSINESS NEWS
10
MEXICO
Odebrecht plans Mexican investment
Brazilian privately-owned company
Odebrecht has agreed a deal with
Mexican President Enrique Peña
Nieto that will see it invest US$
8.1 billion in Mexican energy and
infrastructure projects over the next
five years.
Odebrecht plans to target in
Mexico’s petrochemical, sanitation,
energy and road concession projects.
President Peña Nieto took office
in December last year. He has
introduced a bill that could open up
the state-run energy sector to more
private investment.
Odebrecht is active in the
infrastructure, real estate, oil &
gas, energy and agriculture sectors.
It recorded revenues of US$ 41.3
billion in 2012.
