Lafarge, the world's top cement producer, and Nassef Sawiris, the third-richest man in Egypt, announced a deal in late December that would significantly boost the French company's position in the emerging Middle Eastern construction market and give Sawiris expanded foothold in the worldwide cement industry. Lafarge will purchase Cairo-based Orascom Cement, of which Sawiris is CEO and whose family holds a 60% stake, for $12.9 billion. In turn, Sawiris will receive newly issued Lafarge stock amounting to an 11.4% holding, plus two seats on the Lafarge board.

Scheduled to close in the first quarter of 2008, the deal involves Lafarge financing the purchase with $8.8 billion in debt, in addition to Sawiris' investment. The acquisition would increase Lafarge's annual cement production to 260 million metric tons, the producer notes, up from 170 million mt in 2006. Perhaps more significantly, by 2010, the deal increases Lafarge's income from emerging markets to 65% of total revenue, from 45% in 2007. The combined companies would stand to have 2008 revenues exceeding $25 billion.

For Sawiris, the purchase comes on the heels of upping his stake in Dallas-based Texas Industries Inc. in June from 8.0% to 14.9%. Owning stake in TXI since 2006, Sawiris has made it clear that the possibility of a takeover is under discussion with TXI management, directors and other shareholders. Also in June, Sawiris acquired a 9.7% stake in Raleigh, N.C.-based Martin Marietta Materials Inc., but has been quoted as saying the purchase was only a timely investment.

The Lafarge deal caps a highly fluid year for global materials corporations and marks the third 2007 transaction valued in excess of $10 billion (following the $15.3 billion Cemex-Rinker merger and the $16 billion acquisition of Hanson by HeidelbergCement).