Cemex, Vulcan Materials reach temporary deal for seized port – report

Cemex (NYSE:CX) has reached a temporary deal to use Vulcan Materials’ (NYSE:VMC) port facilities at Playa del Carmen in Mexico, but the companies are still working on a long-term agreement, Bloomberg reported Tuesday.

Vulcan (VMC) has said it been denied access to the facilities since Cemex (CX) employees entered earlier this month, aided by security forces including Mexican marines in uniform, a seizure that drew criticism from several U.S. senators.

Operations at Vulcan’s (VMC) nearby quarry have been shut for months in a dispute with Mexican President Lopez Obrador, who accused the company of extracting materials without proper permits; he reiterated his criticism last week.

Cemex (CX) “is not a top-notch operator, but it is still well-placed to benefit from a multiyear up-cycle in cement,” Stephen Simpson writes in an analysis published on Seeking Alpha.