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"A.C.B." purchases Latvian tarmac plant "Mobil Asfalts" from Swedish NCC : building.lv - par būvniecību Latvijā

"A.C.B." purchases Latvian tarmac plant "Mobil Asfalts" from Swedish NCC

The Latvian road construction company "A.C.B." signed an agreement with one of the largest construction company in Northern Europe NCC on the purchase of capital shares at the Latvian tarmac plant "Mobil Asfalts".

The Latvian road construction company "A.C.B." signed an agreement with one of the largest construction company in Northern Europe NCC on the purchase of capital shares at the Latvian tarmac plant "Mobil Asfalts".

"A.C.B." PR consultants informed LETA that until now NCC owned two-thirds, but "A.C.B." - one-third of "Mobil Asfalts" shares. Signing the purchase agreement, "A.C.B." obtains the factory in its possession.

The sum of the deal has not been disclosed at the time being. At the same time, it is said that the deal is one of the largest international transactions in the Latvia's construction sector.

According to representatives of the company, "A.C.B." is becoming a road construction concern which unites the full cycle of construction - beginning from raw material to construction work.

"A.C.B." board chairman Valdis Lejnieks pointed out that the deal could be regarded one of the rare cases when the Latvian company buys facilities from a Scandinavian company not vice versa.

According to Lejnieks, "A.C.B." along with NCC carried out serious modernization of the tarmac facilities still in 1994.

"NCC" group unites companies with the total annual turnover up to EUR 45 billion (about LVL 29 billion), 25,000 people have been employed at the group. NCC is a multi-branch construction company.

The annual turnover at "Mobil Asfalts" fluctuated between LVL 2 million to LVL 2.8 million with the profitability within 8 percent.

The road construction firm "A.C.B." is one of the first private sector's firms in Latvia and in 11 years of operations has increased its annual turnover from less than million lats in early 1990s to LVL 2 million in 1995 and almost LVL 20 million in 2003.

"A.C.B." group includes the concrete plant "ACB Betons", associated partner road construction company "CBR4" and now also "Mobil Asfalts".

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