Lafarge, a world leader in building materials, has acquired Orascom Cement, the leading cement group in the Middle East and Mediterranean Basin, in a transaction valued at $12.8 billion. Orascom Cement reportedly operates 10 facilities, with a production capacity of 35 million tons. Several plants also are under construction, which will bring total capacity to 45 million tons by 2010. According to Lafarge, Orascom is a market leader in Egypt, Algeria, United Arab Emirates and Iraq, with strategic positioning in other growth markets in the same region: Saudi Arabia, Syria and Turkey. It also is well positioned in high-potential markets in Africa and Asia, which include South Africa, Nigeria, Pakistan and North Korea.

“Orascom Cement provides Lafarge with unparalleled exposure to the Middle East and Mediterranean Basin, a region with exceptional growth potential driven by buoyant oil and natural gas revenues, strong economic and demographic growth, rapid urbanization and immense infrastructure needs,” says Bruno Lafont, Lafarge CEO. “With this acquisition and Lafarge's current construction program of 45 million tons, the group will add a total of 90 million tons of production capacity located mainly in emerging markets.”