Valenciana de Cementos, a CEMEX affiliate, announces sale of operations in the south of Spain
June 22, 1998
CEMEX, S.A. de C.V. (CMXBY:OTC) announced today, through its subsidiary in Spain, Valenciana de Cementos, that it has finalized the negotiations to sell its operations of the Alcalá de Guadaira Plant in Seville, Spain, to the Spanish Grupo Valderrivas corporation. The amount of the transaction is 39 billion pesetas (approximately 260 million U.S. dollars). This sale represents 11% of CEMEX´ operations in Spain.
The plant has an installed production capacity of one million metric tons of cement per year. The agreed price also includes the sale of the ready-mix concrete, mortar and aggregates plants in Andalucâa and Extremadura.
This transaction is consistent with CEMEX´ commitment to having a sound capital structure that positions the company to take advantage of more attractive investment opportunities that will allow it to create greater value.
The transaction is also congruent with CEMEX´ strategy of achieving greater geographic diversification, investing in assets that produce long-term financial yields that significantly exceed their cost of capital, and concentrating in those markets that have long-term high-growth potentials.
This sale allows Valenciana de Cementos to continue being the leader in the Spanish market and to maintain its economies of scale and efficient logistics.
Valenciana de Cementos is CEMEX´ principal international subsidiary, allowing it access to lower costs of capital in order to strengthen the company´s financial structure.
Founded in 1906, CEMEX is the largest cement company in the Americas and one of the three largest cement companies in the world. Through its subsidiaries, CEMEX produces, distributes, markets, trades and sells cement, ready-mix concrete, aggregates and clinker. CEMEX has operations in 22 countries and trade relations with 60 different nations.