Brazil’s antitrust authority Seae said Monday it approved Brazilian cement producers Votorantim Cimentos SA and Camargo Correa SA’s purchase of 53% of the total stock in Portuguese cement maker Cimpor, with restrictions.
Seae’s recommendation will now proceed to Cade, Brazil’s antitrust council that is part of the country’s justice ministry, for a final ruling. Seae is part of Brazil’s finance ministry.
The companies will need to sell cement and concrete plant assets in Brazil in areas where combined operations will account for more than a 20% local market share after the planned share purchase, Seae said in a statement.
The three companies have overlapping operations in cement, crushing and concrete in various Brazilian states, Seae said. In the case of Votorantim, Seae identified operations in nine Brazilian states which are cause for concern, while in the case of Camargo Correa, operations in five Brazilian states pose a risk to free-market conditions, the antitrust watchdog said.
Steelmaker Companhia Siderurgica Nacional SA (CSN), which entered the Brazilian cement market, in 2009 made an offer to buy control of Cimpor that was turned down by Cimpor’s shareholders. The Portuguese company later accepted the bid made by CSN’s rivals Votorantim and Camargo Correa.