Cement Dominates M&A

Cement Dominates M&A


The cement industry has taken center stage in M&A activity, with local players buying exiting European firms’ assets. In late July, France’s Lafarge sold its Chilean cement, aggregates and concrete assets to Peru’s Brescia Group for $555 million enterprise value, equal to 7.4x 2008 Ebitda. Chile-based  analysts say the price paid for the package 84% owned by Lafarge Chile is fair to cheap. A Santiago-based equity analyst covering similar industries, who asks not to be identified, says that a 2004 sale of Chile’s SQM’s 14.05% share in Lafarge predecessor Empresas Melon for $69 million, was about 7.2x Ebitda. However, another Chile-based analyst notes that other r

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