UK: Votorantim interest in Tarmac

UK: Votorantim interest in Tarmac
29 September 2014

Votorantim is understood to be planning a bid for a package of businesses being offloaded by Holcim and  Lafarge, in an effort to seal a GBP32bn mega-merger that would include Tarmac, one of Britain’s largest companies. It is not known whether the Sâo Paulo-based company wants to buy all the assets being sold or cherry-pick parts in different countries.

The disposals are expected to attract offers from other big players, including Ireland’s CRH and HeidelbergCement. The sell-off, valued at between GBP4bn and GBP5.5bn, has also caught the eye of big private equity houses, which have formed several consortiums to launch bids.

Votorantim is among the 10 largest in the world, with more than 30 factories in countries such as the US, Turkey, India and China.

The Lafarge-Holcim merger, unveiled in April, would bring together the world’s top two cement-makers to create a new industry giant with annual sales of US$44bn (GBP27bn). The deal is designed to cut costs, reduce debt and help weather spiralling energy prices. They are looking to slim down activities to appease regulators. The operations being shed employ 10,000 workers and generate about EUR3.5bn (GBP2.34bn) in sales.

Published under Cement News