Cemex is in good shape to fight for Loma Negra

Cemex is in good shape to fight for Loma Negra
Published: 31 August 2004

Cemex, the third largest cement producer at global level, would be prepared to invest an additional US$1 billion not accounted for in its 2004 budget if it decided to participate in the bidding process of Loma Negra, Argentina’s main cement firm, reported analysts. "Among the potential buyers we have Lafarge and Cemex; Holcim cannot participate because it has a 34% market share and it would have problems with authorities due to an excessive market concentration," said Carlos Perezalonso, an analyst for Bancomer.

Loma Negra has a 48% market share in Argentina’s cement industry and a production capacity of 7-8 million tons of cement between its nine production plants. Six of its plants are located in the strategic province of Buenos Aires where the majority of cement is consumed in the country.<P>Perezalonso added that a fair price for Loma Negra would be US$700 million.