Mexican cement company CEMEX has signed an agreement to sell its assets in the Baltics and Nordics to the German building materials group SCHWENK, for around €340 million ($AU538 million).
The Baltic assets consists of a cement production plant with a production capacity of around 1.7 megatonnes, four aggregates quarries, two cement quarries, six ready-mix plants, a marine terminal and a land distribution terminal in Broceni, Latvia.
The assets being divested also include CEMEX’s 38 per cent indirect interest in a cement production plant in Lithuania with a production capacity of around 1.8 megatonnes. Its Estonian export business has also been included as part of the deal.
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Nordic assets included in the sale consist of three terminals in Finland, four terminals in Norway and four terminals in Sweden.
Consolidated earnings before interest tax, depreciation, and amortisation generated by the assets was around $AU43 million.
CEMEX will use the proceeds of the deal for debt reduction and general corporate purposes. The closing of the transaction is subject to the standard conditions for this type of transaction, including authorisation by regulators. CEMEX expects to finalise the divestment during the first quarter of 2019.