Mexican construction materials giant Cemex S.A. reported in mid-February that its acquisition of U.K.-based RMC Group was cleared by the U.S. Federal Trade Commission, the final regulatory approval required to effect a deal announced in September 2004. The court hearing to finalize the deal was scheduled for February 28, and both companies expecting the arrangement to become effective March 1.

Domestic anti-trust authorities approved the $5.8 billion purchase of RMC, subject to the sale of RMC’s Tucson Readymix assets in Arizona to an FTC-approved buyer within six months of signing the consent order. Tucson Readymix consists of five plants, representing less than 0.5% of the total acquisition value of RMC Group. The FTC voiced its concern about competitive issues in the Tucson area as a result of the acquisition, owing to RMC’s presence and Cemex’s four plants. The market’s number three operator, Rinker Materials, has three ready mixed properties and would appear to be an unlikely suitor for the RMC plants.

The shedding of Tucson properties will have little effect on Cemex’s positioning as a dominant player in U.S. ready mixed, with estimated annual production of 18 million to 22 million yd, and platform operations in seven of the top 10 states of fastest population growth. Cemex USA’s headquarters is in Houston and RMC USA’s in Atlanta. A structure for the merged companies’ U.S. operations could potentially be outlined this month in Las Vegas in conjunction with ConExpo-Con/Agg.