Jul 31, 2008, 8:36 GMT
Vienna - The Mexican company Cemex, one of the world's largest cement makers, is selling its building materials subsidiaries in Austria and Hungary to Austria-based construction company Strabag, both companies announced Thursday.
Strabag, one of Europe's leading construction groups, will buy 100 per cent of Cemex' stone, gravel and concrete operations in these two countries for 310 million euros (485 million dollars), Cemex announced in a statement.
Pending approval by market supervisory authorities and Strabag's board, the revenue from the sale will be used to reduce Cemex' debt, the Mexican company said.
In 2007, CEMEX Austria collected revenues of 196 million Euros, Strabag said. CEMEX Hungaria is the second-largest concrete producer in that country, with revenues in 2007 amounting to 61 million euros.
'Guaranteeing the raw materials supply in the long term is a central element of Strabag's corporate strategy,' Strabag CEO Hans Peter Haselsteiner said.
Strabag has said it will focus its business on the Eastern European markets, where GDP growth and growth of the construction sector lie significantly above Western European levels. In 2007, Strabag generated 31 per cent of its output volume in the Central and Eastern European region.
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