Advertisement
YOU ARE HERE: LAT HomeCollections

Cemex to Acquire Concrete Maker RMC

September 28, 2004|From Associated Press

Mexican cement giant Cemex said Monday that it planned to purchase England-based RMC Group, the world's biggest supplier of ready-mixed concrete.

The deal calls for Cemex to pay $4.15 billion and assume $1.7 billion of RMC's debt.

Cemex said the addition would make it the world's largest concrete company, with revenue of more than $15 billion.

RMC directors have agreed to the acquisition, which is subject to approval by shareholders and regulators.

"Becoming part of a powerful new group within the global heavy building materials industry will offer great scope and opportunities for our staff," RMC Chief Executive David Munro said of the deal.

The transaction is expected to be completed before year-end.

Cemex said the acquisition would strengthen its presence in markets with high growth potential, like Eastern Europe, and would solidify its position in already developed markets like Germany and Britain, which account for 45% of RMC's overall sales.

"RMC's strong positions in cement, aggregates and ready-mixed concrete will add to our existing operations in these areas and ... enhance our leading position in the global building materials market," Cemex CEO Lorenzo Zambrano said.

Monterrey-based Cemex, the world's third-largest cement producer, has 2,200 operating units in 22 countries, including the United States.

Advertisement
Los Angeles Times Articles
|
|
|