Senior Credit Analyst - Emerging Markets, EM Spreads

Leandro Gubler

EM Spreads is an independent credit research service specializing in Emerging Markets, primarily focusing on Latin American issuers.

Senior Credit Analyst - Emerging Markets

Cemex 2Q24: Solid Performance in Mexico Offsets Softness in the US

Cemex: The Promising Credit Story of a Regional Leader in the Cement Industry

EM Spreads

Credit

<ul>
<li>The transaction is valued at approximately 6.8x 2023 EBITDA, or $396/ton, which we consider a good price given that Cemex currently trades at 5.5x LTM EBITDA, or $208/ ton.</li>
<li>We view Cemex’s divestments of its Dominican Republic assets as a positive credit event that aligns with its strategic priorities.</li>
<li>With this divestment, the company should focus on growing its key markets through bolt-on acquisition while maintaining its commitment to a healthy balance sheet.</li>
</ul>


The transaction is valued at approximately 6.8x 2023 EBITDA, or $396/ton, which we consider a good price given that Cemex currently trades at 5.5x LTM EBITDA, or $208/ ton.
We view Cemex’s divestments of its Dominican Republic assets as a positive credit event that aligns with its strategic priorities.
With this divestment, the company should focus on growing its key markets through bolt-on acquisition while maintaining its commitment to a healthy balance sheet.


News: Cemex to Divest Its Dominican Republic Operations for $950 Million

Cemex SAB de CV ADR

News: Cemex to Divest Its Dominican Republic Operations for $950 Million