Lafarge has sold its 17.3% stake in Cimpor to Votorantim in exchange for cement assets in Brazil. Votorantim is the dominant cement producer in Brazil with a market share of 41% and a divestment of certain assets would be required in order to be allowed to acquire control of Cimpor, currently the third largest. Lafarge is also present in Brazil, but currently not among the half a dozen largest, though would probably get there when this deal is consummated.
The entry of Votorantim into the capital of Cimpor will almost certainly kill off steel-maker CSN’s attempt to by Cimpor and the proposal by Camargo Corrêa, number five in Brazil and the leader in Argentina, to sell its cement assets to Cimpor for shares has no doubt been finished off too. This year, Votorantim is commissioning a 1.5m tonnes per annum slag grinding plant in the Rio de Janeiro region, with a 1.3Mta integrated works in the state of Santa Catarina following in 2011, having commissioned two new cement works in Brazil and one in the USA last year.
