Cemex reached an agreement to sell certain assets in the U.S. to Grupo Cementos de Chihuahua (GCC) for $400 million as part of the company’s plans to divest as much as $1.5 billion in assets over the next two years to restore an investment-grade capital structure.
The assets, which would be sold to a U.S. affiliate of GCC, mainly consist of Cemex’s cement plants in Odessa, Texas, and Lyons, Colo., three cement terminals and the building materials business in El Paso, Texas, and Las Cruces, N.M.
GCC said the planned acquisition will add 1 million metric tons of cement capacity to its existing 4.6 million tons. The assets will also strengthen GCC’s geographic footprint in key regional markets and support the company’s long-term growth plans for the U.S. with a 45 percent increase in its cement capacity there, GCC said.
The deal with GCC, in which Cemex holds a minority stake, is expected to close by year-end, subject to due diligence by the parties and regulatory approval, according to a company statement.