CEMEX's Offer for Egypt's Assiut Cements Accepted.MONTERREY, Mexico--(BUSINESS WIRE)--Aug. 3, 1999-- CEMEX CEMEX Cementos Mexicanos S.A. de C.V. (CMXBY: OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). ) announced today that Metallurgical Industries Co., an Egyptian government entity, accepted its conditional offer to acquire Assiut Cements Co., the largest cement producer in Egypt. Under the terms of the agreement, a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. has to be negotiated and final due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. must be completed. CEMEX would purchase up to 90% interest in Assiut from the Egyptian government for $44 Egyptian pounds per share (US$12.90 per share), or up to $1.280 billion Egyptian pounds (US$372 million). The transaction must be approved by the Egyptian government and is expected to be completed during 1999. Assiut Cements Co. has 4.0 million tons of cement production capacity. Assiut has US$209 million of net debt. The Egyptian cement market consumed approximately 23 millions tons of cement during 1998. The market has been growing at a compounded annual rate of 7.2% since 1992. The cement industry operates at full capacity and currently imports approximately 8% of the total consumption. Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 61 million metric tons of production capacity. Through operating subsidiaries positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete Ready-mix concrete is a type of concrete that is manufactured in a factory according to a set recipe, and then delivered to a worksite, often by truck. This results in a precise mixture, allowing specialty concrete mixtures to be developed and implemented on construction sites. , aggregates and clinker clink·er n. 1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal. 2. A partially vitrified brick or a mass of bricks fused together. 3. . In addition, the company is the world's leading producer of white cement and the world's largest trader of cement and clinker. |
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