Holcim Ltd acquired control at Cemento de El Salvador, S.A. de C.V.

In an effort to strengthen its presence in the Central American region, Holcim, one of the largest cement companies based in Switzerland, acquired more than 50% of the capital stock of Cemento de El Salvador, S.A de C.V. (CESSA). Thus, positioning the company, with a major participation in the local cement corporation.

F. A. Arias & Muñoz, El Salvador, acted as the main legal advisor to a large group of shareholders at CESSA whom represented the majority of shareholders of the company, in a complex and long transaction, which finally enabled Holcim to acquire the majority of its capital stock, for an amount of approximately US $ 151 million.

As a result of this transaction, Holcim now owns 50.25% of such stock and at the same time has launched a private tender offer to all the shareholders at CESSA, with the purpose of acquiring eventually 100% of its capital, for which it will need to invest approximately US $ 400 million towards 2005. This offer will be extended for three months, finalizing in March 2005.

F. A. Arias & Muñoz, El Salvador, trough partners F. Armando Arias and Lilian Zelaya Panting, and associates Roberta Gallardo, Bernice Carías and Krissia Laguardia de Castillo, provided the legal counsel in this important and complex transaction.

Beltranena de la Cerda y Chávez advised Holcim through Rodolfo Alegría Toruño.

Citibank El Salvador was advised by its in-house lawyer Beatriz Beltranena.