HeidelbergCement, Germany’s largest cement maker, is in talks to buy Italcementi, the Italian building materials company, in the latest round of consolidation in the cement and crushed rock industry, according to people familiar with the matter.
Italcementi had a market value Tuesday of $2.5 billion, meaning that, with a typical takeover premium, a tie-up could value it at more than $3billion should the company be bought out in full.
A deal involving Italcementi would come just weeks after Europe’s two largest cement and crushed earth companies Holcim and Lafarge completed a €41bn combination, reports Arash Massoudi, M&A correspondent and Rachel Sanderson in Milan.
A deal hasn’t been reached and the talks could still collapse.
Italcementi and Heidelberg could not be immediately reached for comment.