BUSINESS HIGHLIGHTS
EUROPE
Lafarge and Holcim list
assets for sale
Major materials businesses to be divested as
industry giants seek merger approval
H
olcim and Lafarge have released a list of the most significant assets that
will be put up for sale to help the two companies allay competition
concerns over their proposed merger.
The largest disposals are planned for Europe, where both companies have
a substantial presence, and include most of Holcim’s French businesses, all
of Lafarge’s German activities, and Lafarge’s UK footprint, which is through
the Lafarge Tarmac joint venture with Anglo American. Anglo American has
agreed to sell its 50% stake in the business. A Lafarge cement plant in Austria
and the company’s assets in Romania will go up for sale as well as Holcim's
businesses in Hungary and Serbia.
Outside Europe, Holcim’s assets in Canada and Mauritius will also go up
for sale. In the Philippines, the two companies are looking at combining their
businesses with some divestments. Meanwhile in Brazil, Holcim and Lafarge
said they would put a proposal to the regulator, Conselho Administrativo de
Defesa Econômica (CADE). The situation is complex due to a set of fines
and forced divestments previously announced by CADE for alleged market
abuses.
AUSTRALIA
Leighton plan
Leighton Holdings has outlined a
new strategic plan which will see
the contractor establish a single,
dedicated construction business,
alongside mining, public private
partnership (PPP) and engineering
divisions. The company said it
was considering the future of its
services, property and John Holland
businesses.
The news came as chairman
and non-executive director, Bob
Humphris, retired from his post.
The role of chairman has now been
taken by CEO Marcelino Fernández
Verdes from parent company
Hochtief. He has been CEO since
March when Hochtief dismissed
the existing Leighton management
and launched a bid to increase its
stake in Leighton from 58.77% to
73.82%.
PORTUGAL
London listing
Mota-Engil Africa, a subsidiary of
Portuguese contractor Mota-Engil
SGPS, is to seek a listing on the
London Stock Exchange. Existing
shareholders in Mota-Engil will
have preferential access to the Initial
Public Offering (IPO) of Mota
Engil Africa equity.
Mota Engil SGPS said it was
looking to float at least 25% of
its African subsidiary, which has
revenues of € 1 billion (US$ 1.35
billion) and a backlog of € 1.7
billion (US$ 2.3 billion). Mota-
Engil Africa has been active in Sub-
Saharan Africa since 1946 where it
employs 14,600 people.
GERMANY
Approval granted
Holcim has received approval
from the European Commission
for its proposed acquisition of
Cemex’s businesses in western in
Germany. The deal is one in a series
of transactions between Holcim
and Cemex in Europe, the Spanish
component of which is still awaiting
Commission approval.
Holcim’s transactions with Cemex
are separate from its intention to
merge with Lafarge.
VALUE OF 1:
SYMBOL AU$
BRL
UK£ CNY
€
INR
YEN MXN RUR SAR
ZAR KRW CHF
US$
Australian Dollar
AU$
0.48
0.5
46
5
.7
9
0.687
5
6
.1
9
5
12.14 3
2.1
3
.5
0 10.07
9
45
0.8
3
6
0.9
3
5
Brazilian Real
BRL
2.07
0.263
2.79
0.33
1
27
.0
45
.9
5
.8
5
15
.5
1.6
9
4.8
6
45
6
0.403
0.45
0
British Pound
UK£
1.83
3
. 8
0
10.6
1.26
102.7
17
4
22.2
5
8
.9
6
.42
18
.5
17
3
2 1.5
3
1.7
1
Chinese Yuan
CNY
0.173
0.3
5
8
0.09
4
0.119
9
.6
8
16
.4
2.10
5
.5
5
0.6
05
1.7
3
9
16
3
0.144 0.16
1
Euro
€
1.46
3
. 02
0.79
8
. 44
8
1.6
13
9
17
.7
46
.8
5
.10 14.6
7
13
7
6
1.22
1.3
6
Indian Rupee
INR
0.018
0.037
0.010 0.103
0.012
1.7
0.217
0.5
7
3
0.06
25
0.18
0 16
.9
0.0149
0.016
7
Japanese Yen
YEN
0.011 0.022 0.006
0.06
1
0.007
0.5
8
9
0.127
6
0.3
3
8
0.03
6
8
0.105
9
9
.9
0.008
8
0.009
8
Mexican Peso
MXN
0.08
2
0.17
1 0.045
0.477
0.057
4.6
2
7
.8
4
2.6
5
0.28
9
0.8
3
0
7
8
0.06
9
0.07
7
0
Russian Ruble
RUR
0.03
1
0.065
0.017
0.18
0 0.021 1.7
4
2.9
6
0.3
7
8
0.109
0.3
13
29
.4 0.026
0 0.029
1
Saudi Riyal
SAR
0.28
5
0.59
2
0.156
1.6
5
3
0.19
6
16
.000 27
.147
3
.46
4 9
.17
3
2.8
7
27
0 0.23
8
0.26
7
South African Rand ZAR
0.099
0.206
0.05
4
0.5
7
5
0.06
8
5
.5
6
6
9
.443
1.205
3
.19
1 0.3
48
9
4
0.08
3
0.09
3
South Korean Won KRW
0.0011 0.0022 0.0006
0.006
1 0.0007
0.05
9
3
0.1007
0.0128
0.03
40 0.003
7
0.0107
0.0008
8
0.0010
Swiss Franc
CHF
1.20
2.48
0.65
6
. 9
4
0.8
2 6
7
.11 113
.8
7
14.5
3
3
8
.48
4.19
12.06
113
1
1.119
US Dollar
US$
1.07
2.22 0.58
4
6
. 2
0.7
35
6
0
101.8
12.9
9
3
4.4
3
.7
5
10.7
8
1011.3
0.8
9
4
For example U
S$
1 =
AU
$
1.07
Exchange rates: July 2014
QATAR
QDVC, a 5
1%
Qatari Diar,
49%
Vinci Construction Grands Projets
subsidiary, has won the
€
7
5
0 million
(U
S$
1 billion)
contract for the final
phase of the light rail system (
LR
T)
in
Lusail, Qatar. It comprises construction
of a depot and 25
stations, with
architectural, electro-mechanical and
project management packages.
US
A joint venture between Skanska
and Traylor B
r others has been won
the U
S$
9
18
million contract from
Los Angeles County Metropolitan
Transportation Authority to construct
the R
e gional Connector, an
underground light rail link in downtown
Los Angeles, U
S. It comprises the
design and construction of a 3
km
double track light rail line and three
new stations.
TURKEY
Liebherr has won an order
from Tü
r kiye Devlet Su I
.
s¸
leri (
DSI )
–
the Turkish government’
s Ministry for
W
ater R
e sources –
for 13
0 PR
7
5
4
Litronic doz
ers. The 40 tonne class
machines will be delivered throughout
the remainder of 2014 and 2015
. DSI
is the primary Turkish state agency
responsible for utilisation of the
country’
s water resources.
US
CNH Industrial has announced it
will close its plant in Calhoun, Georgia,
U
S in the third quarter of next year. The
construction equipment factory makes
doz
ers and excavators. The company
said the closure was necessary as it
adjusted its construction equipment
business to current market demand.
international
construction
july-august 2014
B
U
SINESS NEW
S
10
UK
SNC-Lavalin to acquire Kentz
Canadian contractor SNC-Lavalin
has reached an agreement to acquire
UK-based oil & gas engineering
services Group Kentz for UK£ 1.2
billion (US$ 2 billion). The deal has
been approved by the Kentz board.
Kentz has 14,500 employees and
operates in 36 countries around
the world. The acquisition would
increase SNC-Lavalin’s headcount
to some 44,500 employees, 18,500
of whom will be in the oil & gas
division.
The company added that it
expected to achieve annual savings
of CA$ 50 million (US$ 48 million)
in the first full year following the
acquisition. It will also take SNC-
Lavalin’s total backlog to some CA$
4.9 billion (US$ 4.7 billion).
