South Korea’s leading cement manufacturer Ssangyong Cement Industrial Co. acquired a full stake in Daehan Cement Co., the country’s largest blast-furnace slag cement producer at 265.0 billion won ($232.8 million).

Ssangyong Cement Industrial said on Friday that it inked an agreement with local private equity fund Hahn & Company on purchasing a 100 percent stake, or 1,215,565 common shares, in Daehan Cement held by the private equity at 265.0 billion won. The deal also entitles the cement manufacturer to take over Daehan Slag Co. in which Daehan Cement owns a full stake.

Daehan Cement produces slag cement that is used for making concrete pavement, structures and foundations. It posted nearly 240 billion won in sales and 47 billion won in earnings before interest, tax, depreciation and amortization (EBITDA) last year.

Upon acquiring Daehan Cement, Ssangyong Cement would be able to secure its leadership against Hanil Cement Co. that has threatened to dethrone the firm after taking over smaller rival Hyundai Cement Co.

According to 2015 cement industry statistics report, Korea’s cement market including slag cement and Portland cement, another widely-used cement type, was led by Ssangyong Cement with a 19.5 percent share followed by Hanil Cement with a 12.3 percent share while Hyundai Cement commanded 9.7 percent share and Daehan Cement 5.4 percent. Earlier this year, Hanil Cement in consortium with LK Investment Partners took over Hyundai Cement, raising a prospect that the company would become the Korean cement market’s leader. But with Ssangyong Cement acquiring Daehan Cement, the championship title is expected to stay with Ssangyong Cement, securing about 24 percent share in local cement market.

Ssangyong Cement said it secured additional accounts worth nearly 800,000 tons and expected to add 20 billion won or more in profit every year from its acquisition of Daehan Cement.

By Ahn Gab-seong

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