8 October 2007
HeidelbergCement divests in Nigeria and Niger
HeidelbergCement has decided to sell its stakes in the African companies: Cement Company of Northern Nigeria in Nigeria, and Société Nigérienne de Cimenterie in Niger. The buyer in both cases is the private Nigerian company Damnaz Cement Company Limited.
The divestments in Nigeria and Niger are in line with HeidelbergCement’s strategic reorientation. “We are focusing our financial resources on markets where we can attain a leading market position and which offer a good balance between chances and risks,” says Dr. Bernd Scheifele, Chairman of the Managing Board. It is not possible for the company to achieve a leading market position in Nigeria. The divestment also improves the risk profile of HeidelbergCement.
The proceeds from the disposal will contribute to HeidelbergCement’s deleveraging and debt reduction. The closing of the transaction is expected to take place at the end of October 2007.
“After the acquisition of Hanson, HeidelbergCement is focusing primarily on organic growth and using cash flow specifically for deleveraging,” explains Dr. Scheifele. HeidelbergCement is pursuing a clear dual external growth strategy: focus on cement in growth markets and North America; and focus on aggregates and downstream activities such as ready-mixed concrete or concrete products in mature markets and North America.
HeidelbergCement is the global market leader in aggregates and a prominent player in the fields of cement, concrete and other downstream activities, making it one of the world’s largest manufacturers of building materials. The company employs some 70,000 people at 2,800 locations in 50 countries. HeidelbergCement has been operating in Africa via subsidiaries since 1965. With the exception of Tanzania, all locations are in seven West African countries south of the Sahara. HeidelbergCement is the market leader in most countries.