Camargo says Votorantim to likely exchange Cimpor stake - report

Camargo Correa SA said Votorantim Cimentos SA will probably accept some of Cimpor assets in exchange for its shares in the Portuguese company after rejecting a cash bid, Bloomberg reports.

“There is a very strong probability that Votorantim Cimentos SA will accept this offer,” Camargo Correa’s Intercement unit said in an emailed statement. Votorantim has decided not to accept Camargo’s EUR5.5-a-share cash bid for Cimpor, it said.

By splitting up some of Cimpor’s assets, Camargo Correa, Brazil’s second-biggest construction company, and Votorantim, the country’s largest cement producer, will avoid problems with Brazil’s competition regulator, Camargo Correa said.

This solution “will enable us to overcome the competition problems in Brazil and promote, at the same time, the stability and sustainable growth of Cimpor,” said Camargo Correa.