Essay regarding Cemex

Cemex

. Cemex has a stronger preference pertaining to acquisition above greenfield ventures as a great entry mode. Why? Cemex believed which it could create significant value simply by acquiring inefficient cement businesses in other markets and shifting it expertise in customer care marketing info and technology and production management to prospects units. As well they want to become a unique business in worlwide. Therefore they should purchase each of the competitor businesses and transformed their sysytem to these people. d. How come do you think that Cemex chosen to exit Philippines after failing to gain vast majority control of Sperm Gresik? Why is majority control is so important for Cemex? Cemex entered Philippines in 1998 as part of IMF sponsored privazation software by purchasing 25 stake in goverment held Indonesia bare cement maker Seminal fluid Gresik. As well, Indoneisa promised Cemex to get majority share in 2001. However the country never granted the permission. Indonesia worried about local property were likely to foreign hands. Therefore , that they didnt keep their assure. So , Cemex decided to drawback from Indonesiao. Because they want to capture most Cemex companies around the world. They dont need to purchase a lot of stake from other companies. electronic. Why do you consider that politicians in Philippines tried to block Cemex attemp to gain majaority control over Seminal fluid Gresik. Do you consider that Indonesia's best interest were served by limiting Cemex FDI in the area? Cemex purchased a 25. 5% stake in Semen Gresik and the directly to take vast majority control of the corporation by 2001. But the Indonesian government -- which is the owner of 51% of Semen Gresik -- offers refused to permit Cemex to complete the offer and take majority control over the firm due to the lobby and dangers of social unrest propagate by community politicians who have oppose Cemex's plans. Cemex had previous announced plans to go after an international arbitration claim against Indonesia. These kinds of a claim could pressure Indonesia to pay Cemex as much as 500 usd million in compensation and damages...