Mexican cement company, CEMEX SAB, is pondering over taking legal action against Austria's Strabag SE’s decision of retreating from the Share Purchase Agreement signed between the two companies on June 30, 2008.

Under the agreement, Strabag had to buy CEMEX Austria and CEMEX Hungary from CEMEX SAB for about Euro 310 million.

Strabag has received a written notice from CEMEX SAB, in which the withdrawal was described as invalid. 

Chairman and CEO of CEMEX SAB, Lorenzo Zambrano, said, “It is unfortunate that Strabag is unwilling to fulfil its commitment as specified by the agreement between our companies." 

CEMEX, which provides building materials and services to customers in not less than fifty countries throughout the world, has been making efforts to correct its finances through asset sales after the U.S. housing slump, which affected company’s earnings adversely.

It may be noted here that CEMEX was burdened with net debt of $18 billion at the end of the first quarter.

In the recent trading, CEMEX CPO shares plunged 3.4 percent to 11.57 pesos.