Mexican construction conglomerate Elementia is considering a stock listing as it strengthens its cement business by buying French partner Lafarge SA’s minority stake in joint-venture Cementos Fortaleza, reported the Wall Street Journal.
Elementia agreed to buy Lafarge’s 47 percent stake in Cementos Fortaleza for $225 million. The two companies combined their cement plants in central Mexico in January 2013, giving Fortaleza three plants with production capacity of 2 million metric tons and about a 5 percent market share. Lafarge, which is in the process of merging with Holcim Ltd., said it will pay down debt with the money from the sale.
Elementia CEO Eduardo Musalem said that the company is studying market conditions and will decide in early October whether to go ahead with an initial public offering. The company has requested regulatory approval to sell shares on the Mexican stock exchange. Musalem said it was too early to say how big the share offer could be.