The merger of the eight Grupo Argos cement companies in Colombia has now been approved by the shareholders of all the firms involved and the only remaining obstacle is the green light from the government, according to local press reports.
Under the merger, Argos’ largest subsidiary Cementos del Caribe will absorb Cementos Paz del Río, Colclínker, Tolcemento, Cementos Rioclaro, Cementos del Valle, Cementos El Cairo and Cementos del Nare. All eight are associated with Colombia’s biggest cement producer, Cementos Argos.
The move will be submitted to the authorities in the next few days, "who are expected to give their backing before the end of the year, when the public deeds for the merger will be signed," the company was reported as saying.
In a meeting last Friday, shareholders of Compañía de Cementos Argos agreed that the firm would change its name to Inversiones Argos, and Cementos del Caribe will take on the name Cementos Argos.
If the merger is approved, it will give birth to a company with assets of COP4.5tn pesos (US$1.95bn), domestic production capacity of 7.5Mta, investments in cement firms in Panama, the Dominican Republic, Haiti and Venezuela with total output capacity of 2.5Mta, as well as the corresponding port facilities in those countries.
In the first half of this year Cementos Argos made net profits of COP184bn, up 95% YoY, while the net earnings of the seven companies to be merged reached COP332bn in the same period.