HeidelbergCement Explores Sale of Spanish Assets

(Bloomberg) -- HeidelbergCement AG is exploring the sale of Spanish assets as Chief Executive Officer Dominik von Achten carries out plans to divest peripheral businesses, according to people familiar with the matter.

The German company is reviewing its Spanish portfolio, which includes three cement plants and related businesses, said the people, who asked not to be identified because the discussions are private. While HeidelbergCement is likely to sell a plant in Malaga, it could eventually expand that to include sites around San Sebastian and Bilbao too, one of the people said.

HeidelbergCement’s entire Spanish operation could be worth about 300 million euros ($362 million) if sold, the people said. CEO von Achten said in a Reuters interview earlier this month that the company had identified five assets to sell as it reviews it business to boost margins. He declined to identify the locations.

Germany’s largest cement maker has also been gauging interest in its California operations from potential buyers including Martin Marietta Materials Inc., Bloomberg News reported in December. First-round offers went in last week for the assets, which could fetch about $1.5 billion, people with knowledge of the matter said.

HeidelbergCement spokesman Christoph Beumelburg didn’t return a phone call seeking comment, instead declining to comment in an email sent via a colleague.

Separately, buyout firm KKR & Co. is exploring a sale of Cementos Balboa, the only cement plant in Spain’s Extremadura region, according to people familiar with the process. KKR acquired the asset in 2014.

A representative for KKR declined to comment.

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