Brazil’s construction firm Camargo Correa said on Thursday that it bought an additional 6.5 per cent stake in Portuguese cement-maker Cimpor.
Sao Paulo-based Camargo Correa, a construction and industrial group, agreed to buy the stake from Spanish steel-maker Bipanosa at a price of €6.5 per share, the company said in a statement.
Camargo Correa, which already had a 22 per cent stake, did not disclose exactly how many shares it bought. Camargo is in talks to buy an additional three per cent stake in the Portuguese company. It did not name the sellers.
"The investment is in line with the strategy of building a position that will allow Camargo Correa Cement to be an active part in building the future of Cimpor," Camargo said.
Under Portuguese takeover law, a company can hold a stake of up to 33 per cent in another one without being obliged to make a takeover bid. If the stake is larger than that, a bid must be presented.
Cimpor is the target of a takeover bid by CSN, Brazil’s third-largest steel maker, which launched a €3.86bn (US$5.32bn) offer in January. A third Brazilian company, Votorantim Cimentos, acquired a 17 per cent stake in the firm from France’s Lafarge.
CSN, which last year launched a cement unit, has until Friday to sweeten its €5.75/share bid for Cimpor, unveiled in late December.