CRH is one step closer to the final decision of the AMCU on the largest deal in the construction industry
Kyiv • UNN
The AMCU has completed a market test on CRH's purchase of two Buzzi cement plants for EUR 100 million. The deal will be the largest investment in Ukraine's construction market since the start of the full-scale invasion.
On August 1, the Antimonopoly Committee of Ukraine (AMCU) completed a market test on the acquisition of two Buzzi cement plants by the international company CRH. This is the penultimate step on the way to the deal, UNN reports.
The market test involved a survey of consumers, cement market participants and experts. The AMCU uses this tool infrequently, in cases of large M&A transactions.
On July 25, the AMCU announced the conditions under which the international investor CRH will be able to acquire Volyn Cement in Rivne region and Yugcement in Mykolaiv region from Italian Buzzi. According to the terms, CRH must transfer 25-28% of the shares in Dickerhoff Cement Ukraine to an independent investor within 9 months after the acquisition. The company is also obliged to inform the state regulator about the transfer of the share of assets, the volume of cement produced, its supply to the market, etc.
At the same time, the investor maintains production capacity and ensures equal conditions and market prices for consumers of the building material. In addition, CRH is committed to investing in plants, modernizing production, and preserving jobs by improving working conditions for employees.
The deal is worth EUR 100 million. It will be the largest investment deal in the construction market since the full-scale invasion.
CHR currently owns three cement plants in Ukraine. These are Mykolaivcement, Podilsky Cement and Odesa Cement Plant.
According to Volodymyr Kuzio, Deputy Minister of Economy of Ukraine, the quality of life of our citizens depends on the willingness of foreign and Ukrainian businesses to invest in the manufacturing sector.
"Foreign investment in Ukraine's construction industry is extremely important today, as it, along with the strategy of financing the construction of housing and industrial facilities, will indirectly affect economic growth. As a result, demand for construction materials will grow, Ukrainian companies will be able to modernize their facilities, and Ukrainians will have the opportunity to get affordable housing and jobs," emphasizes Kuzio.
Experts note that the potential deal is important for the country's reconstruction. After all, cement is a key building material, and the presence of a foreign investor willing to invest in the development of domestic production right now is the key to avoiding a shortage at the peak of reconstruction.
According to Valeriy Korbut, director of Khmelnitskzalizobeton, one of Ukraine's largest reinforced concrete plants, "investments and modernization of enterprises always increase competition in the market. And this, in turn, makes the product better and more affordable. That is why it is important to attract investments in the cement industry today to be ready for the recovery.
Andriy Boyko, CEO of KREISEL, a Ukrainian manufacturer of cement-based dry building mixtures, comments:
"As a German company, we know from our own experience how difficult it is to invest now, but it is very important to do so today. It is important to be ready for the moment when the reconstruction begins. That is why now is the perfect time to modernize and increase capacity. I very much welcome international investments and I am a supporter of investments in production in Ukraine, in the development of so-called "economic nationalism". This means that companies that come to Ukraine, especially if they are international companies like ours, bring new technologies, new quality, and create jobs.
CRH is an international group of companies headquartered in Ireland, one of the world's largest manufacturers of construction solutions and materials. In Ukraine, it operates under the CEMARK brand. Since 1999, the company has invested about $500 million in Ukraine. In particular, since the beginning of the full-scale invasion, CRH has invested $80 million, including $34 million in the construction of a cement terminal in Kyiv region. In 2022, CRH made the largest corporate donation in Ukraine through UNICEF, amounting to more than $1 million.
