HeidelbergCement Spin Off with Hanson:
HeidelbergCement is a global 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
51,000 people at 2,500 locations in more than 40 countries.
Hanson UK is a leading supplier of heavy building materials to the construction industry.
They produce aggregates (crushed rock, sand and gravel), cement and cement-related
materials. Major markets are in England and Wales and the central belt of Scotland. Turnover
for the UK business in 2014 was £1.2 billion and employs around 3,000 ...view middle of the document...
Hanson Building Products was formed by HeidelbergCement to own and operate a
diversified portfolio of concrete and clay building product manufacturing assets and sales
channels in the United States, Eastern Canada and the United Kingdom.
The number of shares to be offered and the price range for the potential offering have not yet
been determined by the company.
Grasim Spin Off Cement Unit:
The Aditya Birla Group restructured its flagship Grasim Industries Ltd by spinning off its
cement operations and then merging this with its subsidiary UltraTech Cement Ltd.This deal
had created India’s largest cement company with a capacity of
around 41 million tonnes (mt).
Grasim’s board on 3 October,2009 discussed a proposal
to spin off the cement division into a separate company and this
spun off entity would be merged with UltraTech. When the
merger is complete, the cement company will boast revenue of
around Rs11,767 crore. The cement business, which contributes
69% to Grasim’s revenues, reported a net profit of Rs1,647.96
crore on revenue of Rs6,371.66 crore in 2008-09.
Grasim ended 2008-09 with Rs18,474 crore in revenue and Rs2,615.21 crore in net
profit. It ended the first quarter of 2009-10 with Rs5,080 crore in revenue and Rs1,270.18
crore in net profit. The challenge for cement companies is to minimize the cost of serving the
customer rather than the cost of production. The Aditya Birla Group had undertaken similar
restructuring exercises before to focus on its core strengths and new businesses.