Votorantim and Camargo Correa on the acquisition trail

Votorantim and Camargo Correa on the acquisition trail
Published: 07 February 2005

The Brazilian industrial group Votorantim, owned by the family Erminio de Moraes, is betting on new acquisitions after taking over new assets in Brazil, North America and Peru in 2004 with R$4bn investments. The company increased net income by 18% to R$15.95bn in 2004 over 2003 and acquired two cement plants in the US.

Through the division Votorantim Industrial, it is seeking a cement businesses in India, as well as aluminum and paper & woodpulp businesses in Brazil. In the cement area, Votorantim plans to invest in capacity expansion instead of increasing via acquisitions.   It presently owns a 42% share in the Brazilian market and acquired the two plants in the US, with capacity of 6Mt, for US$1.2bn.   

Meanwhile, fellow local producer Camargo Correa Cimentos is studying acquisitions in Brazil and abroad - the company has been trying to take over the Argentinean Loma Negra over the past months.

Camargo Correa, which is eyeing Latin America, Europe, the US and the North of Africa, is completing an issuance of R$360m debentures in order to increase production, which totals 2.7Mt of cement per year.

Between January and September 2004, the group decreased net income by 8.75 per cent to R$471.2m and the Ebitda fell by 24 per cent from R$241.5m to R$184.2m. Despite that, net profit jumped from R$164.6m to R$494.1m with the implementation of restructuring process.