Heidelberg Cement pulls out of Holcim bidding

German contractor Heidelberg Cement has pulled out of bidding for assets being offered by Lafarge and Holcim.

Its decision not to proceed comes ahead of the other two construction firms’ proposed merger – which has required them to dispose of elements of their portfolio to comply with competition regulations.

The combined companies would create the largest cement group in the world, with global assets reportedly totalling US$ 40 billion.

In September, Holcim named two executives, Urs Bleisch and Alain Bourguignon, to lead management presentations into potential options for the divestment of its assets.

Meanwhile, Lafarge made a US$ 135 million sale of its UralCement business as part of its debt restructuring operations ahead of the planned deal to merge with Holcim.

Heidelberg’s withdrawal from bidding for Lafarge and Holcim assets follows a decision to move ahead with plans to sell part of its Hanson building products division.

A statement from Heidelberg read, “After a thorough analysis, HeidelbergCement has decided to refrain from the ongoing bidding process for the assets offered for sale of Lafarge and Holcim in the frame of its merger proceedings.

“The company intends to use the anticipated proceeds from the announced sale of its building products business in North America and UK for debt reduction and for its own high quality growth projects.”