Building materials group CRH has agreed a deal to sell its Brazilian cement business to Italy's Buzzi Unicem for $218m. 

CRH operates three full-cycle cement plants and two grinding plants in Brazil. 

It sold about 2.5 million tonnes of cement in the country last year.

In a note, Davy Stockbrokers said the deal further strengthens Buzzi Unicem's presence in Brazil where it operates a joint venture with Grupo Ricardo Brennand. 

The disposal also further reduces CRH's footprint in the emerging markets and follows the disposal of its Indian joint venture late last year.

The disposal proceeds will likely be used to build on its already significant financial capacity, which will leave the group with lots of capital allocation options in 2021, Davy added. 

CRH has said in recent months that the global Covid-19 pandemic had a material impact across the construction markets in which it operates.