[ Reply | Next | Previous | Up ]
From:
Category: Kiln
Date: 07 Oct 1999
Time: 20:11:09
Remote Name: 148.233.109.215
MONTERREY, Mexico, Oct 7 (Reuters) - Mexican cement giant Cemex <CX.N>, the third largest cement producer in the world, has $1 billion free to spend next year to expand its empire, possibly in Tunisia or India where it is reportedly in talks to acquire plants, analysts said on Wednesday. "For 2000 they have $1.0 billion dollars (free) after having paid interest on their debt, capital requirements, taxes, and maintenance investments," said Monica Lourdes, an analyst with Mexican brokerage Valores Finamex. This year Cemex <CEMEXCPO.MX>, with an installed capacity of 60 million tons a year, has been on an aggressive acquisitions campaign in Asia, Latin America and elsewhere. The company has holdings in the United States, Spain, the Caribbean, Latin America, the Philippines, and Indonesia, and in mid-October, is expected to wrap up its $372 million purchase for Egypt's Assiut Cements Co., with an annual production capacity of four million tons. In recent days, official sources in Tunisia told Reuters that Cemex is competing with 15 other companies to buy three cement firms being privatized there, with a joint capacity of two million tons. In mid-August, Indian newspaper The Financial Express reported that Cemex was about to close a deal to buy the cement division of Jaiprakash Industries <JAIP.BO>, with a capacity of four million tons. Cemex sources declined to comment on plans in Tunisia and India. "They are comfortably off. Without upsetting their balance sheet they could agree to buy some big companies," said Guillermo Santana, an analyst with Mexico's Santander Investment. Carlos Pena, of Afin Securities brokerage, estimated that Cemex could take on $1.0 billion in debt for new purchases, without damaging its financial health. But other analysts warned that with debt coming due and other commitments, Cemex did not have much room to move for new purchases. "They do not have much room to make big purchases. The Egypt acquisition is very big and they also have the buyback of shares in Spain and also large amounts of debt coming due in late 1999 and in 2000," one analyst said, asking that his name not be used. Analysts estimate that Cemex has $1.1 billion in debt payments due next year, although they did not rule out financing.