Cemex sells Australian operations

Cemex has reached an agreement to sell its Australian operations to Holcim Group for about A$2.02 billion (US$1.6 billion).

The assets to be divested are 249 ready-mix concrete plants, 83 aggregates quarries and 16 concrete pipe and products plants -- a total of 348 facilities throughout Australia. The sale also includes Cemex's 25% stake in Cement Australia, which has an annual production capacity of 5.1 million tons of cement, including the expansion under construction in the Gladstone plant. Its assets include four cement plants and one grinding mill.

BBVA, BNP Paribas, Citi, HSBC, Santander and the Royal Bank of Scotland are acting as financial advisors to Cemex.

This divestment is part of the company’s strategy to improve its financial flexibility, including the implementation of $900 million in recurrent cost savings, the rationalization of capital expenditures and the reduction of its total debt and improvement of its debt profile.