Cemex wins arbitration over sale of some European assets

Cemex wins arbitration over sale of some European assets
13 June 2012

Cemex said Monday that an arbitration court has ordered Austria's Strabag SE pay Cemex EUR30m plus interest and other costs after the European company pulled out of a 2008 agreement to buy Cemex assets in Austria and Hungary.

Cemex said in a filing with the Mexican stock exchange that the International Arbitration Court of the International Chamber of Commerce ruled on May 31 that Strabag's termination of the agreement was invalid, and that the sides were notified on 1 June, according to reports on Dow Jones International News.

In July 2009, Strabag terminated an agreement to buy the assets from Cemex for EUR310m, adducing failure to obtain antitrust clearance in Austria by the deadline. Cemex rejected Strabag's arguments, and took the case to court.

Cemex said Strabag had been granted conditional approval by the Austrian Cartel Court, although one of the conditions couldn't be met because a plant that Strabag was told it would have to sell to a third party had already been dismantled.

Cemex said Strabag ignored its recommendation that it make a supplementary request to the Austrian Cartel Court, and instead appealed the decision, later using the lack of antitrust clearance as a reason for withdrawing from the agreement to buy the assets.

It wasn't immediately clear if Strabag would seek further appeals in the case. Strabag's offices in Vienna couldn't immediately be reached for comment.

Published under Cement News

Tagged Under: Cemex Strabag