CEMEX to invest in chilean cement company
June 2, 1999
CEMEX, S.A. de C.V. (CMXBY:OTC) announced today that it has acquired an 11.92% interest in Chile´s largest cement producer, Cementos Bio Bio, S.A. (CEMENT: Chilean Stock Market), for US$34 million.
Cementos Bio Bio has 2.25 million metric tons of installed capacity and 0.85 million cubic meters of ready-mix capacity. The company also has a 36% interest in SOBOCE, a Bolivian cement company with 0.5 million metric tons of installed cement capacity.
The total enterprise value paid by CEMEX for this investment was approximately US$135 per ton, which excludes non-cement assets held by Cementos Bio Bio.
Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 61 million metric tons of production capacity. Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.