Lafarge withdraws from Cemento Avellaneda

Lafarge withdraws from Cemento Avellaneda
Published: 27 January 2005

Lafarge has withdrawn from Cemento Avellaneda, the Argentinean cement company. According to market sources, Lafarge has just sold its 43 per cent stake in Molins, the Spanish company through which it held a 50 per cent stake in the Argentinean company. The other 50 per cent stake is held by Spain’s Uniland. Cemento Avellaneda is Argentina’s third largest cement company, with a 16 per cent share in the local market. The leading players are Loma Negra (48%) and Minetti (33%). Lafarge remains in the Argentinean market through its local subsidiary Klaukol. Separately, local businesswoman Amalia Fortabat continues to negotiate the sale of Loma Negra for US$1.0bn. Camargo Correa, the Brazilian group, has agreed with the asking price but refuses to assume the company’s US$270m debt. According to market rumors, Lafarge could also be interested in Loma Negra.