CP Cimento stake to attract Cimpor and Holcim?

CP Cimento stake to attract Cimpor and Holcim?
Published: 09 April 2009

The possible interest of Portuguese cement company Cimpor in Brazilian sector firm CP Cimento is neutral for Cimpor, analysts with BPI said today.

The opinion followed a report by mergers and acquisitions intelligence company Mergermarket saying CP Cimento’s owner, the Koranyi Ribeiro family, is studying the sale of between 30% and 100% in the Brazilian company. According to Mergermarket, Holcim and Cimpor are among the possible buyers.

BPI said that the acquisition of CP Cimento will involve between EUR200m (US$264.4m) and EUR250m. The deal will not be of significant benefit for Cimpor’s business whereas it could worsen Cimpor’s financial liquidity, the experts noted.

Also, according to the investment bank, the information is speculative.

Nevertheless, in theory Cimpor may be interested in strengthening its exposure to the most attractive region in Brazil, the southeast, BPI acknowledged.