Cemex sells Broceni plant and Nordic assets to Schwenk Zement

Cemex has announced that it has signed an agreement for the sale of assets in the Baltics and Nordics to Schwenk Zement for approximately EUR340m.

The Baltic assets being divested consist of the 1.7Mta Broceni cement plant in Latvia, four aggregates quarries, two cement quarries, six ready-mix plants, one marine terminal and one land distribution terminal in Latvia. The assets divested also include Cemex's approximate 38 per cent indirect interest in the 1.8Mta Akmene cement plant in Lithuania. In addition, the export business to Estonia is included as part of the divestment.

The Nordic assets being divested consist of three import terminals in Finland, four import terminals in Norway and four import terminals in Sweden.

Consolidated operating EBITDA generated by the divested assets was approximately EUR27.3m in 2018.

The proceeds expected to be obtained from this divestment will be used mainly for debt reduction and for general corporate purposes, says Cemex.

The closing of this transaction is subject to the satisfaction of the regulators. Cemex currently expect to finalise this divestment during the 1Q19.