(Bloomberg) — Cemex SAB is exploring a sale of its Colombian business as the Mexican cement maker exits non-core assets to focus on North America and Europe, people familiar with the matter said.
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The Monterrey, Mexico-based company is working with advisers to gauge potential interest in the unit, the people said, asking not to be identified because the discussions are private.
The Colombian operations could attract interest from potential suitors including Holcim Ltd., the world’s biggest cement company, and Cementos Molins of Spain, according to the people. The business could be worth an estimated $700 million to $1 billion, they said.
Considerations are early stage, timing and valuation are fluid and talks may not lead to a transaction. Some bidders may be reluctant to offer the asking price, the people said.
A representative for Cemex declined to comment on specific asset sales, saying only that “the company has been in the process of rebalancing its portfolio in recent years, and that generates various rumors.”
“As always, if there is something official to communicate, you will hear it directly from us,” the spokesperson said. Representatives for Holcim and Molins declined to comment.
Cemex, which clawed back its investment grade rating last year after losing it during the 2009 financial crisis, has focused on reducing its debt, expanding its presence in core markets such as the US, Mexico and Europe, and selling assets in emerging markets.
The company received $2.2 billion from selling emerging-markets assets last year, such as its Dominican Republic operations for $950 million. The company is on the hunt for further deals, executives said on a recent investor conference call. This month, Jaime Muguiro, head of Cemex’s US operations, was appointed chief executive officer in the latest indication of the company’s focus on the US market.
Cemex agreed to sell its Guatemalan business to Holcim last September. The Swiss building materials company also entered Peru’s construction market in August through two smaller acquisitions. Holcim is making selective acquisitions while moving ahead with plans to list its North American business.
–With assistance from Allegra Catelli and Clara Hernanz Lizarraga.
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