Cimpor has capacity for further acquisitions

Cimpor has capacity for further acquisitions
Published: 12 November 2008

Portuguese cement producer Cimpor has the financial capacity to make further acquisitions, according to estimates of market analysts polled by local business daily Jornal de Negocios on Monday.

The "good financial structure and the free cash flow on markets where Cimpor operates" are the main reasons for the analysts’ belief in the company’s potential for new purchases.

In the first half of 2008, despite the overall 6% decline in cash flow, markets like Morocco, Egypt and Brazil represented for Cimpor rises of 24.5%, 29.7% and 41.1%, respectively. These markets are still showing significant growth.

In the past 10 days, Cimpor informed about two new acquisitions, namely of Chinese Liyang Dongfang Cement and the Canary Islands operations of Cemex. The agreement on the purchase of 100% in Liyang Dongfang Cement was reached at the end of October 2008, while that on Cemex Espana was presented on November 7. The two operations represent a total investment of EUR 187m (USD 238.1m).