Cemex S.A. (CX), GCC Finalize Terms of Assets Sale Agreement

August 29, 2016 6:37 AM EDT

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CEMEX, S.A.B. de C.V. (NYSE: CX) announced that it has reached an agreement with Grupo Cementos de Chihuahua, S.A.B. de C.V. (“GCC”) on the terms and conditions regarding the sale to GCC of certain assets in the U.S. originally announced on May 2, 2016.

The assets being sold by an affiliate of CEMEX to an affiliate of GCC in the U.S. have changed and mainly consist of CEMEX’s cement plant in Odessa, Texas, two cement terminals and the building materials business in El Paso, Texas and Las Cruces, New Mexico. CEMEX’s cement plant in Lyons, Colorado and cement terminal in Florence, Colorado are no longer part of the assets being sold to GCC. Upon closing of this transaction GCC will pay CEMEX U.S.$306 million.

Closing of this transaction is subject to customary closing conditions, which include the satisfaction of various conditions precedent, consisting mainly of approvals from the United States competition authorities and GCC’s shareholders, among others, as well as GCC obtaining financing to purchase the assets. We currently expect to finalize this transaction before the end of 2016.

Citigroup is acting as financial advisor to CEMEX in this transaction.

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