Votorantim, Holcim seen buying 40% stake in BRC for US$1bn

Votorantim, Holcim seen buying 40% stake in BRC for US$1bn
Published: 25 January 2011

Brazilian conglomerate Votorantim or the Brazilian unit of Holcim are the potential buyers of a 40% stake in US-controlled cement maker BRC Cimentos, according to a report by news service Agencia Estado.

BRC put the stake up for sale in August for BRL1.8bn (US$1.07bn). Among the other companies showing interest at the time were local construction company Camargo Correa, steelmaker CSN and the Joao Santos cement group. However, Holcim has declined to comment and Votorantim has claimed no knowledge of a deal, the report said.

If the 40% is not auctioned in its entirety, the remainder is expected to be sold in an initial public offering (IPO) on the Sao Paulo stock exchange Bovespa by February 2012.

BRC is currently building a cement factory in Rosario Oeste in Mato Grosso state. It will have capacity of 2Mta. The firm is also planning to build another three facilities with capacities of 2Mta apiece for the southeast and north of the country. These will give BRC an overall capacity of 8Mt/y in Brazil within five years.