Cemex signs MOU to form JV with Ready Mix USA

Mexican cement giant Cemex (NYSE: CX) has signed a memorandum of understanding (MOU) with Alabama-based Ready Mix USA to form a joint venture to meet the construction needs of the US's southern region, Cemex announced. According to the proposal, Cemex will provide two cement plants - one in Alabama and another in Georgia - as well as 11 cement terminals and concrete, block and aggregates plants in the Florida Panhandle area. In turn, Ready Mix will add to the venture all of its concrete and aggregates operations in Alabama, Georgia, Tennessee and the Florida Panhandle, as well as its block producing plants in Arkansas, Tennessee, Mississippi, Florida and Alabama. Cemex will manage the cement operations, while Ready Mix USA will administer the venture's concrete, aggregates and blocks operations. "This strategic alliance is an important step in Cemex's vertical integration and it will allow us to serve our customers even better," Cemex president Gilberto Pérez said, adding that the construction sector in the southeastern US "is one of the most dynamic markets in the country." The deal is expected to be finalized within the next 45 days. Beginning March this year Cemex - one of the world's three largest cement companies - completed the US$5.8bn debt-financed acquisition of British cement maker RMC, and the company expects to obtain more than US$200mn/y in synergies with its new acquisition. In the meantime it has begun to divest in non-essential companies to cut down on its debt. So far this year Cemex has sold its 11.9% stake in Chile's Cementos Bío Bío for US$65mn, as well as two of its US plants to Brazilian conglomerate Grupo Votorantim for US$389mn.