Lafarge has announced that it has entered into an agreement for the sale to VOTORANTIM of assets currently owned by Blue Circle in the North American Great Lakes area, for a total amount of Euro 825 million.
The assets involved include :
-two cement plants (Bowmanville and St. Marys in the province of Ontario);
-a grinding station in Detroit, Michigan ;
-7 cement terminals on the US side of the Great Lakes ;
-39 ready-mix concrete plants in the province of Ontario ;
-some of Blue Circle aggregates assets, also in the province of Ontario, representing about 4 MT of annual sales.
The parties intend to consumate the transaction soon after the acquisition of BCI (Blue Circle Industries plc.) by LAFARGE, subject to the approval of the Federal Trade Commission (FTC) and the confirmation of the agreement in principle reached with the Canadian Competion Bureau, as well as to other customary conditions. The BCI acquisition is expected to occur this summer.
Based in Sao Paulo, VOTORANTIM is the market leader in Brazil for cement (41% market share) and one of the ten largest cement producers in the world. It has 16 cement plants with a capacity of 25 MT per year. VOTORANTIM which had revenues of nearly Euro 4.7 billion in 2000, is also involved in many other businesses including pulp and paper and metals.
LAFARGE is world leader in building materials. It has 66 000 employees in 71 countries and holds top-ranking positions in all four of its Divisions - Cement, Aggregates & Concrete, Roofing and Gypsum. In 2000, the Group recorded sales of Euro 12.2 billion.
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