Business News
Builder Strabag withdraws from deal to buy Cemex subsidiaries
Jul 3, 2009, 12:01 GMT
Vienna - Austrian construction group Strabag said Friday it had withdrawn from a deal buy parts of Mexican building materials giant Cemex, after Austria's cartel authority had taken too long to mull the case.
Strabag, one of Europe's leading construction groups, agreed last July to buy Cemex's Austrian and Hungarian subsidiaries for 310 million euros (436 million dollars).
While Hungary's authorities have given conditional approval, Austria's have not done so within the 11-month commitment period set by Strabag.
Strabag's chief executive Hans Peter Haselsteiner said he was disappointed that the deal with one of the world's largest cement producers failed: 'We made every effort but we could not convince the competition authorities of a positive decision.'
The plan had been to secure Strabag's long-term supply of stone, gravel and concrete as part of its strategy which is strongly focused on Central and Eastern Europe.
Cemex wanted to use the proceeds to reduce debt. The Austrian cartel authority could not be reached for comment.
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