InterCement sells African businesses to Huaxin Cement

InterCement Participações S.A. has reached an agreement with Huaxin Cement Co Ltd regarding the sale of InterCement’s businesses in Mozambique and South Africa. Following the announcement of the sale of InterCement's operations in Egypt in January 2023, the sale of the remaining Mozambique and South Africa businesses further positively contributes to the group's ongoing liability management plans and the acceleration of InterCement’s broader strategic review to return focus to its core markets in South America, according to the company.

The transaction, which is valued at US$265m, remains subject to customary conditions precedent, including, among others, regulatory approvals in China, Mozambique and South Africa. InterCement anticipates using the net proceeds from the sale to repay a portion of its outstanding indebtedness. Following the sale, InterCement’s portfolio will include 23 cement plants, with an installed cement production capacity of approximately 29Mta.