Argos Readies Coal Asset Sale

Colombia’s Cementos Argos is set to launch a marketing process that may result in the sale of one of its subsidiaries, Carbones del Caribe, say executives close to the process. The company has tapped Credit Suisse to advise it on the divestiture, which could easily top $500m, say people close to the company. Argos executives were heard heading to New York last week ahead of the launch. Carbones del Caribe is a subsidiary of Cementos del Caribe, which belongs to Argos. It was originally set up to provide fuel coal to the cement company. The Colombian mine produces high-grade coal usable by thermoelectric power generators. As such, potential bidders could include companies like Brazil’s MPX, Spain’s Endesa, and even Swiss commodities shops Glencore and Xstrata, among other companies, speculate executives with knowledge of the asset. MPX, the power utility company owned by Eike Batista, draws its coal from two Colombian mines it owns.