announced that Tianshan Cement Co., Ltd.

In fact, Tianshan Cement, Zoomlion Cement, Southern Cement, Southwest Cement and Sinoma Cement are all cement industries of China Building Materials.

received the Reply on Approving Xinjiang Tianshan Cement Co., Ltd.

At the same time, its debt ratio will also increase from 23.14% to 66.21%.

So in the future, will this large-scale merger and acquisition tide also appear in the gravel aggregate industry? Will it also form an “industry oligarch”? On September 10, Xinjiang Tianshan Cement Co., Ltd.

The valuation of the assets won in this transaction is determined by reference to the appraisal value on the benchmark date of June 30, 2020, and is finally determined to be 98.142 billion yuan.

The underlying assets of Zoomlion Cement are valued at 21.96 billion yuan, the underlying assets of Southern Cement are valued at 48.77 billion yuan, the underlying assets of Southwest Cement are valued at 16.09 billion yuan, and the underlying assets of Sinoma Cement are valued at 11.32 billion yuan.

In order to solve the problem of horizontal competition, China Building Materials chose the only A-share listing platform, Tianshan Cement, which included these cement assets.

The merger and acquisition of other four cement enterprises by Tianshan shares was approved.

The transaction amount reached 98.142 billion yuan, making it the third largest merger and acquisition case in the history of A-share.

This acquisition can also be seen as the action of the cement industry of China Building Materials to return to A from Hong Kong shares, in order to solve the horizontal competition, and also to seek a better financing platform.
.

to Issue Shares to China Building Materials Co., Ltd.

It is reported that on August 25, the China Securities Regulatory Commission’s Merger and Reorganization Review Committee of Listed Companies reviewed the issuance of shares, payment of cash to purchase assets, and collection of matching funds and related transactions of Tianshan Shares.

As of the close of September 10, the market value of Tianshan shares was 17.87 billion yuan, and its total assets were 15.597 billion yuan by the end of June, far lower than the total assets of its acquisition target of 98.142 billion yuan, which is obviously a snake-eating restructuring plan.

to gain access to gravel resources, the survival pressure of private enterprises and gravel aborigines is increasing.

Just as in the process of the cement industry from extensive operation to refined management, mergers and acquisitions and integration between companies continue to emerge, and finally several leading enterprises leading the development of the industry have formed, firmly controlling their respective regional markets.

This is also the third largest M&A case in the history of A-share after China Merchants Shekou (145.8 billion yuan) and Yangtze Power (104.3 billion yuan).

The third is to effectively solve the problem of horizontal competition with the target company.

At present, the gravel aggregate industry is at an important stage of transformation and upgrading.

Before this acquisition, China Building Materials Group was the actual controller of Tianshan Shares and the target company, and the main business of the target company was the research and development, production and sales of cement, clinker and commercial concrete related building materials products, the same as the main business of Tianshan Shares.

Wire Ring Clutch

The increasingly diversified patterns will directly affect the formation of the final pattern of the gravel market.

Due to the huge scale of assets, the restructured Tianshan shares are also known as “China Shenni” by the market.

Editor’s note: As the upstream and downstream of the industrial chain, cement and gravel aggregate have similar properties, which can also reflect the future development path of the gravel industry to some extent.

At this stage, the concentration and competition and cooperation level of the cement industry have reached a very high level, and have achieved remarkable results in the intelligent, modern and standardized development.

An insider told the China Times that China Building Materials was listed in Hong Kong, and Tianshan was selected as the integration platform.

So far, the restructuring of 100 billion yuan of Tianshan Shares has basically been settled.

After half a year, another key step was taken in the restructuring of Tianshan Shares.

The way of this restructuring is that Tianshan shares issued shares and paid cash to purchase 100% equity of Zoomlion Cement, 99.9274% equity of South China Cement, 95.7166% equity of Southwest China Cement and 100% equity of Sinoma Cement from 26 counterparties such as China Building Materials (the four acquired enterprises are hereinafter referred to as the “target companies”).

After the completion of this merger and acquisition, the cement assets of China Building Materials will be re-integrated, and the production capacity and assets of Tianshan Cement will be significantly improved, which will surpass Conch Cement and become the “top cement” in the country.

According to the review results of the meeting, this transaction was passed unconditionally.

In this case, in order to seek better development, there has been a lot of cooperation among state-owned enterprises, private enterprises and even between state-owned enterprises and private enterprises in the industry.

In the acquisition report, China Building Materials Group also pointed out that the purpose of this acquisition is to seize the industry opportunity and build the largest A-share cement listed company in China.

issued shares and paid cash to purchase assets, and raised matching funds, as well as related transactions, which were approved by the China Securities Regulatory Commission, and the company was approved to issue shares to raise matching funds of no more than 5 billion yuan.

With the continuous influx of state-owned enterprises, central enterprises, large cement, large building materials, etc.

After the completion of this transaction, it will help to eliminate and avoid the horizontal competition between Tianshan Shares and the target companies.

2921), dated September 6, 2021, issued by the China Securities Regulatory Commission on restructuring and buyout transactions.

to Purchase Assets and Raise Supporting Funds (ZJXK [2001] No.

The second is to give full play to the synergy between Tianshan and the target company.

Most of the factors were that Tianshan was listed in A shares.

It is understood that on September 9, Tianshan Cement Co., Ltd.

Behind the asset transfer plan of China Building Materials, which supports Tianshan to swallow the elephant, is the asset transfer plan of its controlling shareholder, China Building Materials.

In contrast, the gravel aggregate industry is inevitably a little inferior, and the development path of the cement industry can provide some reference for the gravel industry, which may also become its future development trend.