Camargo Correa takeover of Cimpor to involve asset swap

Camargo Correa takeover of Cimpor to involve asset swap
30 May 2012

A takeover bid by Camargo Correa for Cimpor will involve an asset swap to buy out Votorantim, Portugal's securities regulator CMVM said on Tuesday, Reuters reports.

CMVM approved the previously-announced EUR5.5/share bid under these terms and said the remaining shareholders in Cimpor would have between Wednesday and June 19 to decide whether to sell their stakes.

Camargo Correa, which is already the largest single shareholder in Cimpor with a 33 per cent stake, launched a EUR2.5bn bid for the rest of Cimpor in March, in a move defended by the Portuguese government.

CMVM said that Camargo and Votorantim had agreed that the deal would involve an asset swap, as expected by analysts.

Camargo will exchange its cement and concrete business in South America and Angola for Cimpor's overseas assets, including in China and India but excluding Brazil, also taking hold of 21 percent of Cimpor's net consolidated debt.

Camargo will then swap the assets it received for Votorantim's stake in Cimpor.

The decision by CMVM may address some concerns by Brazil's antitrust regulator Cade, which has been analysing Votorantim and Camargo Correa's purchases of stakes in Cimpor since 2010, when the two frustrated an acquisition attempt by Brazilian steelmaker CSN.

Published under Cement News