Readymix seen as springboard for eastern Europe

Readymix seen as springboard for eastern Europe
Published: 27 October 2004

The acquisition of UK cement company RMC by Mexican group Cemex will also represent a step towards expansion on the German market for the Mexican company, as Readymix, the German subsidiary of RMC, ranks third among German cement companies. The acquisition of the UK group is not expected to take place before January 12. There is some uncertainty regarding the future of the German company within the Cemex group, as it is suffering the effects of the weak German building market and is said to be one of the least profitable foreign subsidiaries of RMC. However, losses in Germany for RMC are reported to have been reduced to GBP21.9m for the first half of the current year.

Cemex has indicated that it has only recently begun first contacts with the management of RMC and Readymix, but assures that it holds hopes for business on the German market. Readymix is regarded as a potential base for expansion into eastern Europe. (Original report Frankfurter Allgemeine Zeitung).