Lafarge sells lime business

French group Lafarge, one of the world’s largest construction materials companies, at the end of last year sold its lime division to Simcor Management Oradea SA, under a transaction estimated by sources at 4-5 million euros.

The Romanian lime market, which some players say is worth some 30 million euros annually, has seen many acquisitions lately, as the lime operations were outsourced by the big cement producers such as Lafarge, Holcim (Switzerland) and Heidelberg Cement (Germany).

The French giant sold its two lime plants to the Oradea-based company, which is in fact owned by Germany’s AHG Gruppe, operating in the construction materials industry in eastern Germany, Poland and Romania, according to the quoted sources.

“Having decided to focus on its four core divisions (cement, aggregates-concrete, plasterboard and roofs), the Lafarge Group resolved to sell some of its operations. Thus, in line with the transactions that have already been concluded in Poland and Hungary, we decided that lime operations would be sold to other industrial investors in Romania, as well,” Lafarge Romcim officials told Ziarul Financiar.

According to the above-mentioned sources, Lafarge Romcim, which held the main stake in Lafarge Var (Lafarge Lime) sold it to Simcor Management SA last December. Lafarge Var operates in Medgidia and Targu Jiu. The transaction was endorsed by the Competition Council, according to the Lafarge officials, who would not comment on the deal.

Simcor Management SA officials could not be contacted by press time. The sale of Lafarge Var is the Romanian market’s second-largest transaction, after the Belgians paid 10-11 million euros for the two lime plants owned by German group HeidelbergCement.
adrian.mirsanu@zf.ro