Mexico-based cement manufacturer Cemex announced Wednesday its intention to divest Colombian operations through transactions expected to generate approximately $555 million, continuing the company’s strategy of consolidating assets beyond its primary markets.
According to a company statement, Swiss competitor Holcim will acquire a cement production facility, grinding mill, and additional plant portfolio for $485 million, with the transaction anticipated to finalize before year’s end.
The Mexican cement producer indicated ongoing negotiations with unnamed buyers for additional Colombian assets valued at roughly $70 million.
Reports suggest Cemex has been pursuing an exit from Colombia following recent asset sales in Central America and the Philippines over the past two years.
The company will maintain ownership of two Colombian cement facilities with total annual production capacity of 1.6 million metric tons, along with a grinding operation, ready-mix concrete plants, and aggregate mining sites.
“We are pleased with the continued progress we are making in further streamlining our portfolio, while we focus on investing and strengthening our position in key geographies and businesses in the U.S., Europe and Mexico,” Chief Executive Jaime Muguiro said.
Holcim’s chief executive previously indicated to Reuters that significant acquisitions could occur in coming months, following the company’s 1.85 billion euro ($2.14 billion) purchase of German construction systems manufacturer Xella.
