Cemex Acquires RC-Baustoffe Berlin to Expand Circularity Business

Company Developments - Cemex, S.A.B. de C.V. has acquired a majority stake in RC-Baustoffe Berlin GmbH & Co. KG, enhancing its circularity business [1] - The acquisition will allow Cemex to process up to 400,000 tons of mineral construction, demolition, and excavation materials annually, integrating with its Regenera business [2][3] - Regenera aims to increase the recovery of construction materials, having recovered over 9 million tons in 2023, with a target of nearly 14 million tons by 2030 [3] Industry Trends - The concrete and aggregates industry is experiencing a decline in cement and ready-mix volumes across various regions, with expectations of continued declines in 2024 [6][7] - Despite the downturn, increased spending on infrastructure and public construction is anticipated to drive growth in the industry [8] - The current valuation of the Concrete & Aggregates industry is at 18.3X forward 12-month price to earnings, compared to the S&P 500's 21.2X [10] Competitor Performance - Eagle Materials has seen a 30.8% increase in shares over the past year, with expected earnings growth of 13.2% for fiscal 2024 [12] - Vulcan Materials shares have gained 8.2% in the past year, with earnings expected to rise by 11.7% in 2024 [13] - Summit Materials has experienced solid pricing growth and anticipates continued trends in 2024, with shares up 2.7% in the past year [14][15]