Votorantim, Camargo said to be in talks to buy rest of Cimpor
Brazilian holding companies Votorantim Participacoes SA and Camargo Correa SA are in talks to buy a remaining stake in Cimpor-Cimentos de Portugal SGPS SA, Bloomberg reports.
Camargo plans to take over Cimpor’s operations in Brazil, while Votorantim would consolidate assets of the Lisbon-based company outside of Brazil, said negotiators. The Sao Paulo-based companies already own about 54% of Cimpor. The value of the remaining stake is about €1.5bn (US$2.1bn) based on Cimpor’s 19 October closing share price.
Votorantim and Camargo acquired control of Cimpor in February 2010 after beating an offer from Cia Siderurgica Nacional SA.
In February, Brazil’s Finance Ministry recommended that the antitrust agency approve Votorantim and Camargo’s stakes in Cimpor with some restrictions, including the sale of some assets. The talks with Cimpor shareholders could break down and there is no guarantee a deal will be reached.
Cimpor’s biggest shareholders after Camargo and Votorantim are Manuel Fino SGPS SA, with a 10.7%stake, Banco Comercial Portugues SA’s employee pension fund, with 10% and Caixa Geral de Depositos, with 9.6%, according to data compiled by Bloomberg. Published under Cement News
