Cemex is considering the sale of assets including operations in Austria, Hungary and select building products in the United Kingdom. Cemex has mandated Morgan Stanley as its financial advisor in connection with the sales process in Austria and Hungary and Citigroup for the UK sales process.
The Austrian operations consist of 26 aggregate plants (7.1Mt of volume sold in 2007) and 39 ready-mix plants (2Mm3 of volume sold in 2007). These assets generated revenues of approximately US$274m in 2007.
The Hungarian assets are comprised of five aggregate plants (1.8Mt of volume sold in 2007), 31 ready-mix plants (0.8Mm3 of volume sold in 2007) and five paving stone plants. 2007 revenues from these assets were approximately US$84 million.
The UK assets include the Floors, Roof Tiles and the Rail Products businesses, which generated combined sales of approximately US$98m in 2007.
The proceeds from the potential assets sale will be used for debt reduction.