February 20, 2019 / 4:56 PM / 3 months ago

UPDATE 1-Mexico's Cemex says it is selling some European assets, shares rise

(Adds analyst commentary)

MEXICO CITY, Feb 20 (Reuters) - Mexico’s Cemex, one of the world’s largest cement producers, said on Wednesday it is selling some of its European facilities and businesses to German building company Schwenk for about $385 million.

Monterrey-based Cemex said it would use the money from the deal to reduce its debt. The firm has been aggressively seeking to slash debt and regain its investment-grade rating.

The company’s shares were up 3.5 percent during morning trading.

The assets that Cemex would sell include a production plant and several quarries in Latvia as well as import terminals in Finland, Norway and Sweden. Cemex said it expects the deal to close in the first quarter, pending regulatory approval.

Mexican brokerage Intercam wrote in a note to investors that the transaction underscored Cemex’s commitment to reducing its debt.

In early February, the company reported a net loss of $37 million for the fourth quarter, sending its shares down nearly 7 percent.

Reporting by Julia Love and Miguel Angel Gutierrez; Writing by Julia Love; Editing by Jeffrey Benkoe and Andrea Ricci

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