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Displaying items by tag: Assets
Holcim and Cemex to swap assets in Europe
29 August 2013Europe: Mexican cement producer Cemex and Swiss multinational cement maker Holcim have announced that they have reached an agreement to conduct a series of transactions in Europe. The transactions will are expected to be complete in the final quarter of 2013, subject to regulatory approval.
Cemex will acquire all of Holcim's assets in the Czech Republic, which include a 1.1Mt/yr cement plant, four aggregates quarries and 17 ready-mix plants.
Cemex will sell its assets in the western part of Germany to Holcim, which include one cement plant and two grinding mills that encompass a total capacity of 2.5Mt/yr, one slag granulator, 22 aggregates quarries and 79 ready-mix plants. Cemex will retain its interests in other parts of the country.
In Spain, Cemex and Holcim will combine all their cement, ready-mix and aggregates operations. Cemex will have a 75% controlling interest over the combined operational assets and Holcim will control 25%.
As part of these transactions, Holcim will pay Cemex Euro70m in cash. Additionally, the transactions are expected to generate synergies that will result in a recurring improvement in Cemex's EBITDA (earnings before interest, tax, depreciation and amortisation) of US$20-30m, which will begin to be realised in 2014.
"When finalised, this will be an important strategic step that should allow Cemex to improve its footprint in Europe and it will consolidate our portfolio in the continent," said Lorenzo H Zambrano, Chairman and CEO of Cemex.
"This transaction will significantly strengthen our presence in Germany while at the same time giving us the necessary flexibility in Spain," said Holcim CEO Bernard Fontana. "Overall, our footprint in Europe will be considerably strengthened."
CPV and CRH swap assets
26 February 2013Spain/Ireland/UK: On 26 February 2013 Irish buildings materials supplier CRH plc announced that it and Spanish cement business Cementos Portland Valderrivas SA (CVP) had reached an agreement, effective immediately, regarding an asset swap in relation to certain Spanish assets.
CRH will transfer its 26% stake in Corporacion Uniland SA to CPV. In return, CPV will transfer its 99% stake in Cementos Lemona SA to CRH. CRH will also acquire Southern Cement Ltd, a cement importation business, based in Ipswich, UK as part of the transaction. As part of the transaction CRH and CPV will terminate all legal disputes with each other.
Cemex intends to raise USD1bn from asset sales by end of 2012
29 September 2011Mexico: Lorenzo Zambrano, the chairman and chief executive of Cemex, has announced that he expects the company to raise USD1bn from asset sales by the end of 2012. This is part of a continuing strategy to lower its debt, including USD180m in 2011.
In a webcast meeting with investors Zambrano said that the highly leveraged Cemex doesn't want to own assets that produce less than a 10% return on capital. "We will only sell assets that will improve our return on capital and help us to deliver our balance sheet," he stated.
Cemex's heavy debt load, USD18.4bn in total debt plus perpetual notes as of 30 June 2011, coupled with a slow recovery in key markets has contributed to investor pessimism that has knocked Cemex's share price down sharply. Zambrano added that Cemex hadn't anticipated the extent of the effects of the recession in the US, one of its largest markets along with Mexico, but that he expects Cemex's US operations to be profitable in 2012.