CEMEX Completes acquisition of Egypt's assiut cements
November 22, 1999
CEMEX, S.A. DE C.V. (NYSE:CX) announced today that it has formalized the contracts for the acquisition of a 90% stake of the social capital of Assiut Cements Co., the largest cement producer in Egypt. CEMEX will close this transaction in the following days.
The operation has two phases: Initially, CEMEX will acquire a 77% stake of the social capital of Assiut worth approximately US$318.8 million, and it will have the right to buy an additional 13% – worth approximately US$53.8 million – until June 30, 2000.
The total investment is worth approximately US$373 million and includes a minor investment to increase production capacity at Assiut by 0.6 million metric tons.
Assiut Cements Co. has 4.0 million tons of cement production capacity, and a net debt of US$230 million.
The Egyptian cement market consumed approximately 23 millions tons of cement during 1998. The market has been growing at a compounded annual rate of 7.2% since 1992.
Founded in 1906, CEMEX is one of the three largest cements companies in the world with approximately 65 million metric tons of production capacity (including the aforementioned transaction). Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.