Cemex

Cemex is reported to be negotiating to take an interest in the cement business of Murli Industries, which the Indian agricultural group is said to be selling for some US$550m. Murli Industries has, since February of this year, had a 3.0Mt per annum cement works and is building two similar plants for completion in 2013. To date, Cemex is the only one of the five largest international cement producers not to have a presence in India. How this deal could be financed remains to be seen, as Cemex is suffering from cash restraints. A financing of the deal by third parties, or substantially by third parties, is a possibility, with Cemex having a management contract and an option to purchase.