CEMEX, GCC Agree On Terms And Conditions For Sale Of Certain U.S. Assets

(RTTNews) - CEMEX, S.A.B. de C.V. (CX) announced that it has reached an agreement with Grupo Cementos de Chihuahua, S.A.B. de C.V. or "GCC" on the terms and conditions regarding the sale to GCC of certain assets in the U.S. originally announced on May 2, 2016.

The assets being sold by an affiliate of CEMEX to an affiliate of GCC in the U.S. have changed and mainly consist of CEMEX's cement plant in Odessa, Texas, two cement terminals and the building materials business in El Paso, Texas and Las Cruces, New Mexico. CEMEX's cement plant in Lyons, Colorado and cement terminal in Florence, Colorado are no longer part of the assets being sold to GCC. Upon closing of this transaction GCC will pay CEMEX U.S.$306 million.

The company currently expects to finalize this transaction before the end of 2016.

CEMEX, S.A.B. de C.V. announced that it will be participating in the proposed corporate restructuring of Grupo Cementos de Chihuahua, S.A.B. de C.V. that was announced by GCC and which has the purpose of simplifying GCC's current shareholder structure. CEMEX currently owns an indirect minority interest in GCC. In connection with the corporate restructuring, if approved by GCC's shareholders as proposed, CEMEX will directly own 23% of the outstanding share capital of GCC and, additionally, own a minority interest in CAMCEM, an entity which in turn will own a majority interest in GCC as a result of the proposed restructuring.

CEMEX currently expects to hold its minority interest in CAMCEM resulting from the corporate restructuring as a long-term investment and therefore expects to remain an indirect minority shareholder of GCC. The 23% direct interest in GCC that CEMEX will hold as a result of the proposed corporate restructuring is currently being considered as an option among other CEMEX assets available for divestment in the context of CEMEX's previously announced asset divestiture plans.