Court ruling threatens to nullify Cemex stake in Assuit, Egypt

Court ruling threatens to nullify Cemex stake in Assuit, Egypt
Published: 14 September 2012


Cemex said on Thursday its Egyptian unit Assiut Cement Co has learned of a preliminary ruling by a court in Egypt that could nullify the agreement under which Cemex bought a majority stake in the company more than a decade ago, Dow Jones Global Equities News reports.

Assiut Cement is fighting the decision. It will continue to operate as usual, Cemex said in a statement to the Mexican Stock Exchange.

Cemex bought its stake in Assiut from Metallurgical Industries Co., a state-run Egyptian firm, in 1999. Cemex said it has since spent to increase productivity at the unit, which employs 3,000 people.