Heidelberg Materials Australia has entered a $1.703 billion deal to acquire the construction materials business of Maas Group Holdings (ASX:MGH).

The deal covers assets including 40 quarries with combined approved reserves of more than 350 million tonnes, 22 ready-mix concrete plants, two asphalt operations and one C&D recycling site.

It takes in associated businesses with capabilities in geotechnical services, machinery sales and hire, and earthmoving contracting. These include Regional Group Australia, CB, Austek Roads and Macquarie Geotech.

The transaction, expected to be completed in the second half of this year, will see about 1140 Maas employees join the Heidelberg Materials Australia team.

Left: The location of quarries, concrete plants, and other business interests set to change hands.

“The acquisition of Maas’ construction materials division reflects our ongoing commitment to delivering consistent, high-quality products and services to customers across Eastern Australia,” HMA chief executive Phil Schacht said.

“Maas’ strong reputation and regional expertise complement our business, and we’re looking forward to welcoming the team as we continue delivering reliable sustainable materials to our customers.”

Maas pivots to AI, electrification

It comes as MGH turns its sights to the data-centre and electrification markets. It has outlined a focus on:

• Digital infrastructure: high-density power, fibre-connected hyperscale data centres and AI compute clusters
• Electrification: leveraging MGH’s existing electrical businesses and selectively adding strategic capability to expand its participation in the growing electrification sector

“Heidelberg Materials is well-positioned to continue building on the CM business’ strengths, leveraging its global expertise and track record in delivering major infrastructure projects, while providing continuity for the business and its people,” MHG chief executive officer and managing director Wes Maas said.

“This transaction allows MGH to crystallise value from a high-quality asset while positioning the Group toward the next phase of infrastructure investment including digital infrastructure, electrification and AI-enabled assets.

“The sale enables a strategic re-focus and disciplined redeployment of capital into areas where we see strong structural tailwinds.”

MGH has made a strategic minority equity investment of $100 million for a stake of about 1.7 per cent in Firmus Grid, a developer and operator of next-generation AI infrastructure.

The Heidelberg Materials Australia–Maas Group transaction is conditional on regulatory approvals from the Australian Competition and Consumer Commission (ACCC) and the Foreign Investment Review Board (FIRB),
along with other customary conditions, including Maas shareholder approval.

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