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Nov 28 2024, 08:31 GMT
Heidelberg Materials
Acquisition of Giant Cement Holdings
- Sectors : Building Materials
- Companies : Heidelberg Materials
DAVY VIEW
The addition of Giant Cement Holdings to Heidelberg Materials should yield synergies given that cement and circularity are Heidelberg Materials’ specialties; it will plug into an existing cement operation in the US (we estimate that it adds 7% to capacity); and it can operate as a base for growth in specific markets. The valuation (10x forward EBITDA) is not cheap, but the US market has an attractive structure and growth potential.
