EU approves acquisition of Hanson by HeidelbergCement

German cement producer HeidelbergCement.(File Photo)
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    "After examination, the commission concluded that the proposed operation would not significantly impede effective competition" in the European Union or in a substantial part of the bloc, the EU's antitrust watchdog said in a statement.

    HeidelbergCement is active in the cement, ready-mixed concrete and related building materials markets, while Hanson mainly focuses on aggregates and aggregates-based building products.

    Cement and aggregates are the two main constituents of concrete.

    The activities of the two companies are essentially of a complementary nature, the commission said, adding the combined firm would continue to face strong competitors with significant market shares.

British company Hanson. (File Photo)
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    HeidelbergCement is offering 16.32 billion U.S. dollars in cash to buy Hanson, the biggest ever takeover in the construction materials sector. If completed, the combined company was estimated to have a market value of 34 billion U.S. dollars, lagging only behind the French building materials giant Saint-Gobain.

    Separately, Saint-Gobain said on Tuesday it would buy the industrial mortar-making unit Maxit of HeidelbergCement for 2.1 billion euros (2.9 billion U.S. dollars).

    HeidelbergCement said the sale would help it finance the acquisition of Hanson.