Cemex announced today that it has signed an agreement for the sale of its operations in Austria and Hungary to the Rohrdorfer Group for approximately EUR160.1m.

The Austrian operations consist of 24 aggregate quarries (approximately 6.47Mt of aggregates sold in 2014) and 34 ready-mix plants (approximately 1.60Mm3 of ready-mix sold in 2014). Cemex’s operations in Austria had net sales of approximately US$241m in 2014.

The Hungarian operations being divested consist of five aggregate quarries (about 1.36Mt of aggregates sold in 2014) and 34 ready-mix plants (around 0.46Mm3 of ready-mix sold in 2014). The Hungarian operations had net sales of approximately US$47m in 2014.

The proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes, Cemex said.

The transaction is expected to be finalised in the fourth quarter of 2015, subject to conditions.

Bank of America Merrill Lynch, Citigroup, BNP Paribas and Morgan Stanley & Co International plc acted as financial advisors to Cemex in this transaction.

Croatia divestments
Cemex also announced it has has signed an agreement for the sale of its operations in Croatia, including its assets in Bosnia-Herzegovina, Montenegro and Serbia, to Duna-Dráva Cement for around EUR230.9m.

The assets being sold mainly consist of three cement plants (with cement sales of around 1.66Mt in 2014), two aggregate quarries (aggregate sales in 2014 at around 0.16Mt) and seven ready-mix plants (2014 sales of about 0.25Mm3). Cemex’s operations in Croatia, including Bosnia-Herzegovina, Montenegro and Serbia, had net sales of around US$138m in 2014.

Again, the proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes, Cemex said.