Camargo Corrêa withdraws bid for Cimpor

Camargo Corrêa withdraws bid for Cimpor
Published: 01 February 2010

Brazilian construction firm Camargo Corrêa has withdrawn its merger bid for Portuguese cement company, the latter announced in a statement on the site of Portuguese stock market regulator CMVM on Friday.

"Cimpor hereby informs that it has received today a letter from Carmargo Corrêa informing...its decision to withdraw the preliminary and non-binding merger proposal presented on January 13th 2010, which was then communicated to the market by CIMPOR" says the statement.

Camargo Corrêa said upholding the proposal would "go against the underlying assumptions of its project and its standard practice intervention model wherever it operates".

Meanwhile, Brazilian antitrust regulator SDE is investigating recent proposals made by local companies for Cimpor.

The Justice Ministry-linked body has requested new information from Cimpor and its Brazilian suitors

Votorantim, Camargo Corrêa and Companhia Siderúrgica Nacional (CSN) as part of an investigation started in 2006 into alleged price-fixing in the domestic cement market.

CSN in made a €3.86 billion hostile takeover bid for Cimpor in December, corresponding to €5.75 a share. Earlier in January Cimpor’s board rejected the bid as too low.