Cemex Sells Its Stake in Panama to Grupo Estrella for $200 Million
Cemex announced this Monday that it has sold its stake in Panama for $200 million. The Mexican cement giant has handed over its factory to Grupo Estrella, a Dominican industrial conglomerate. The firm explained in a statement that this transaction will serve to bring resources to priority investment areas, primarily to increase its presence in the United States.
The sale of Cemex to Grupo Estrella includes the cement plant in Chilibre, just outside Panama City, as well as the rights to acquire additional reserves granted by the Panamanian government. Cemex indicates that it will retain its additives business in the Central American country. The company arrived in Panama in 1994 with the purchase of the Cemento Bayano business.
The multinational has indicated that "a minor portion" of the transaction will be used to increase the firm's stake in Couch Aggregates, a US mineral aggregates company that operates in the southeastern United States, primarily in the states of Alabama and Florida. The US company operates seven sand and gravel quarries and five marine terminals in the Gulf of Mexico.
The firm explained that it has set a goal of increasing its stake in Couch Aggregates to become the majority shareholder by 2024. "These transactions represent another important step in our strategy to optimize our current portfolio and continue investing in growth in priority markets, particularly aggregates in the United States," said Jaime Muguiro, CEO of Cemex, in the statement.
Cemex is one of the largest cement companies in the world, with a presence in 100 countries in the Americas, Europe, Asia, and Africa. Its business focuses on cement, concrete, and mineral quarrying for construction. Muguiro assumed the leadership of the firm in April, and this marks his first decision regarding the company's direction.