Cemex to sell Austrian, Hungarian units

Byswb

Updated Mon, 04 Aug 2008 00:00:00 GMT

Mexican cement maker Cemex SAB de CV says it has agreed to sell operations in Hungary and Austria.

Austria's Strabag SE wants to buy the operations for €310 million (US$480 million). Strabag is Europe's leading construction and building materials group.

The agreement announced Thursday is subject to approval by regulatory authorities and Strabag's board of directors.

Proceeds of the sale will be used to reduce Cemex's debt.

The company's Austrian operations include 26 aggregate plants and 39 ready-mix plants. They generated about US$274 million in revenue in 2007.

The Hungarian assets include five aggregate plants, 31 ready-mix plants and five paving stone plants. They accounted for about US$84 million in revenue last year.