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| Cemex improves its portfolio in Europe Mexican cement maker Cemex announced that it has reached an agreement with Swiss cement maker Holcim to conduct a series of transactions that will improve Cemex's strategic footprint in Europe. Cemex will acquire all of Holcim's assets in the Czech Republic, which include one cement plant (cement capacity of 1.1 million tons, clinker capacity of 0.9 million tons), four aggregates quarries and 17 ready-mix plants. The Czech Republic is a market with a strong economy and solid prospects and we expect that acquiring these assets should improve Cemex's operations in the country and in Central Europe. Cemex will divest its assets in the western part of Germany to Holcim, which include one cement plant and two grinding mills (total cement capacity of 2.5 million tons, clinker capacity of 0.9 million tons), one slag granulator, 22 aggregates quarries and 79 ready-mix plants. The German market is an attractive one and Cemex will still be present in the eastern, northern and southern part of the country with an important footprint. 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 in this country. This transaction will allow Cemex to better serve the market, which should translate into higher value creation in that country. As part of these transactions, Holcim will pay Cemex €70 million Euros in cash. Additionally, the transactions are expected to generate synergies that will result in a recurring improvement in Cemex's EBITDA of about US$20 million to US$30 million, beginning to be realized in 2014. write your comments about the article :: © 2013 Construction News :: home page |