Germany-based HeidelbergCement AG is exploring the sale of some of its U.S. assets as the producer’s chief executive Dominik von Achten seeks to divest peripheral businesses, reported Bloomberg. The company is working with Morgan Stanley on the sale of California operations, which could fetch around $1.5 billion, according to people familiar with the matter.
The building materials company operates three integrated cement plants in California, as part of its Lehigh Hanson subsidiary, in addition to concrete and aggregates units.
HeidelbergCement’s advisers recently sent initial marketing documents to potential buyers, including Martin Marietta Materials, CEMEX, CRH Plc, Summit Materials and LafargeHolcim, as well as other cement makers in emerging markets, the sources said.
The company is expected to receive first-round bids early next year. Although, HeidelbergCement could opt to keep the business if offers come in too low, the people said.
The global environmental non-profit CDP recently recognized the activities of HeidelbergCement as one of the world’s leading companies in cutting emissions, mitigating climate risks and developing the low-carbon economy. HeidelbergCement maintains its position on the organization’s annual “Climate Change A List,” and remains the leader in the cement sector.
The company has sharpened its climate targets considerably. By 2025, HeidelbergCement aims to reduce specific net CO2 emissions to below 525 kg per tonne of cementitious material. This figure corresponds to a reduction by 30% compared to 1990 and had previously only been targeted for 2030. The company has also committed itself to offer carbon neutral concrete by 2050 at the latest.