Company making significant progress towards US$2 billion asset-disposal target by end of 2020
CEMEX say they are making significant progress with the divestment initiative that forms part of their ‘A Stronger CEMEX’ enhancement plan, having either closed or reached binding agreements for sales of approximately US$750 million, which represents 50% of the low end of the company’s December 2020 divestment target range.
The enhancement plan, which includes a US$1.5 to US$2 billion asset-disposal target by the end of 2020, was launched in July 2018. Since then, the company has announced the divestment of, among others: assets in the Baltics and Nordics; its terminal in Manaus, Brazil; aggregates and ready-mixed concrete assets in Germany; and its white cement business, including the Buñol cement plant in Spain.
‘We are pleased with the progress of our asset-sale initiative under our ‘A Stronger CEMEX’ plan, said Fernando A. Gonzalez, chief executive officer of CEMEX (pictured). ‘We remain completely committed towards the goal of achieving an investment-grade capital structure and will continue our disciplined deleveraging and improvement of our capital structure.’
For transactions that have already closed, CEMEX say the proceeds have been used for general corporate purposes, including debt reduction, whilst for those that have not yet closed, the proceeds expected from these divestments will mainly be used for debt reduction and general corporate purposes.