Lafarge buys Orascom Cement, boosts position in Middle East

0 Comments | AFP, December, 2007

PARIS (AFP) — Lafarge, the world's top cement-maker, said Monday it will buy Egypt's Orascom Cement for 8.8 billion euros (12.9 billion dollars) in a deal that boosts the French company's position in the booming Middle East construction sector.

"The acquisition of a leading Egyptian group is a decisive opportunity to accelerate our profitable growth strategy in cement in emerging markets," said Lafarge chairman and chief executive Bruno Lafont.

The Lafarge share price shot up on the Paris stock exchange after the deal was announced. It was the CAC 40 index's top winner, up 10.71 percent by midday at 119.20 euros.

The deal, which Lafarge said it would complete by the first quarter of 2008, means that 65 percent of Lafarge's income will come from emerging...