CEMEX complete sale of Australian operations
CEMEX announced this week that they havecompleted the sale of their Australian operations to Holcim Group forapproximately A$2.02 billion (approximately £1.1 billion). The proceeds fromthe sale will be used to reduce debt and to strengthen CEMEX's liquidityposition.
CEMEX say the divestment marks anothermilestone in the company's efforts to regain its financial flexibility; theseinclude the refinancing of US$15 billion dollars (£9.4 billion) of debt and theglobal offering of 1.495 billion Ordinary Participation Certificates withestimated net proceeds of US$1.782 billion (£1,116 billion).
The company's former Australian operations,which are now trading under the name Holcim (Australia) Pty Ltd, were fullyconsolidated as part of the Holcim Group on 1 October and continue to operateunder the leadership of the existing management team.
Holcim say the acquisition will allow themto include Australia in their mature market strategy of being active in thecement as well as in the aggregates and ready-mix concrete business.
Holcim Australia's most important marketpositions are located in the continent's more densely populated eastern andsouth-eastern states, and in the mining belt of Western Australia, all of whichare among the fastest growing regions in Australia.
The purchase price of A$2.02 billion, whichwas entirely financed with the proceeds from Holcim's capital increase of Julythis year, includes 100% of the share capital of Holcim Australia and a 25%interest in Cement Australia, in which Holcim already held a 50% shareholding.
