Cemex sells operations across Europe

Cemex has sold its operations in Croatia, Bosnia & Herzegovina, Montenegro, Serbia, Austria and Hungary. In the first batch of sales, three cement plants, two aggregate quarries and seven ready-mix plants in Croatia, Bosnia & Herzegovina, Montenegro and Serbia have been sold to Duna-Dráva Cement, which is part of the HeidelbergCement Group. These operations had combined net sales of approximately US$138 million in 2014 and amount to some 1.66 million t of cement, 0.16 million t of aggregates and 0.25 million cubic metres of ready-mix sold in 2014. The sale is valued at €230.9 million.

In the second batch, operations in Austria and Hungary are being sold to the Rohrdorfer Group for approximately €160.1 million. The assets include 24 aggregate quarries (approximately 6.47 million t of aggregates sold in 2014) and 34 ready-mix plants (approximately 1.60 million cubic metres of ready-mix sold in 2014) in Austria, as well as five aggregate quarries (~1.36 million t of aggregates sold in 2014) and 34 ready-mix plants (~0.46 million cubic metres of ready-mix sold in 2014) in Hungary. The two countries had combined net sales of approximately US$288 million in 2014.

The proceeds from the transactions will be used mainly for debt reduction and for general corporate purposes. Closing is expected in 4Q15 subject to regulatory approvals. Bank of America Merrill Lynch, Citigroup, BNP Paribas and Morgan Stanley & Co. International plc acted as financial advisors to Cemex in these transactions.

Cemex maintains cement operations elsewhere in Europe, including the UK, Spain and Germany.

Adapted from press releases by Katherine Guenioui

Read the article online at: https://www.worldcement.com/europe-cis/12082015/cemex-sells-operations-across-europe-309/