Italcementi Group becomes the majority shareholder of Hilal Cement (Kuwait)

Italcementi Group, through its Egyptian subsidiary Suez Cement Company, debuts in Kuwait becoming the new majority shareholder of Hilal Cement. After its recent entry on to the Chinese market with the acquisition of Fuping Cement, Italcementi Group's move into Kuwait gives it operations in 21 countries around the world and further strengthens its activities in emerging countries with high growth potential. As a result of an agreement with Boodai Enterprise Company, the previous majority shareholder, Suez Cement took over the 47% of Hilal Cement’s share capital from Boodai at the end of the offer period, as envisaged by the regulations of the Kuwait Stock Exchange. This operation, together with a 4% stake which was acquired previously, enables Suez Cement to become the majority shareholder in Hilal Cement with an overall holding of 51%. This deal represents the first-ever acquisition of a listed Kuwaiti company by a global company and one of the largest foreign direct investments in Kuwait. Hilal Cement Company operates two terminals in southern Kuwait, for a total capacity of approximately 1 million metric tons/year. In 2006 it reported revenues of approximately 65 million dollars and EBITDA of approximately 13,5 million dollars. The Kuwaiti cement industry expects significant growth in demand over the next few years, as well as interesting developments in downstream integration in ready mixed concrete. The emirate lacks raw materials for cement production and its only full-cycle plant is obliged to import materials from neighbouring countries, with significant repercussions on production costs.