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Mergers, Acquisitions and Takeovers Case Study

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Case Title:

Cemex, Mexico—Revolutionising Low- cost Housing

Publication Year : 2005

Authors: Rekha Ravindran. C, Hansa Iyengar

Industry: Building Materials and Construction Equipment

Region:Mexico

Case Code: MAA0060B

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

Cemex was one of the leading cement companies of the world. During early 1990’s, it experienced problems in its home country, Mexico . To revive its sales in Mexico, Cemex ventured into low cost housing by launching an innovative savings and credit scheme, ‘Patrimonio Hoy’. Patrimonio Hoy provided the poor people cement, raw materials and a host of allied services so as to enable them build their own homes. It was a huge success in Mexico and Cemex planned to extend the scheme to other developing countries.

This case explores the concept of Patrimonio Hoy and provides scope for discussing the innovative marketing programme of Cemex. It also provides scope for the discussion of low- cost housing in Cemex.

Pedagogical Objectives:

  • To discuss the objectives of NAFTA and similar Free Trade Agreements
  • How Cemex forward integrated and provided end to end building solutions
  • How a company can benefit the society and at the same time make profit.

Keywords : Mergers,Acquisitions,Alliances Case Study;Cemex; Patrimonio Hoy; Low-cost housing; Housing in Mexico; Construction; Acquisition; Construmex; Dolex; Socios; Cement; Services; Distribution network; Mexico; Tanda system; Mexican economic crisis

Contents: 
Cemex - Company Profile
Housing Scenario of Mexico
Patrimonio Hoy
Distribution Network of Patrimonio Hoy
Services Offered by Patrimonio Hoy
Benefits Offered by Patrimonio Hoy
Future Outlook
Acquisitions by Cemex

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