Six shortlisted in Cemex Australia unit sale

Six shortlisted in Cemex Australia unit sale
02 October 2008

At least six bidders have been shortlisted for a potential sale of Cemex’s Humes business in Australia, including private equity funds and trade buyers, two sources familiar with the process told Reuters on Wednesday.

Those shortlisted include New Zealand-based Fletcher Building Ltd and Australian private equity fund Catalyst Investment Partners.

Australian building products maker Boral Ltd and private equity fund Archer Capital could also be on the shortlist, analysts say. A Fletcher Building spokesman said the company had "moderate interest" in Humes but declined to comment if it had submitted a bid.

Cemex appointed Merrill Lynch earlier this year to advise it on selling Humes, which is valued at around A$400m (US$317m).

But a sharp drop in global stock markets could impact the sale price, with some bankers saying Cemex may decide not to sell the asset if it fails to get a decent value.

"I think we will get a deal done," one of the sources with direct knowledge said. "Everyone that is on the shortlist has got a chance. I don’t think anyone is in the box seat."
Published under Cement News