BCPAR joint venture buys CRH's Brazilian assets

 BCPAR joint venture buys CRH's Brazilian assets
27 October 2020

Companhia Nacional de Cimento (CNC), a wholly-owned subsidiary of BCPAR SA, company in which Buzzi Unicem holds 50 per cent of the share capital in a joint venture with Grupo Ricardo Brennand, has signed a purchase agreement for the businesses of the CRH group operating in Brazil.

The CRH companies operating in Brazil own three integrated cement plants and two grinding units in the southeast. The acquisition will result in a significant strengthening of BCPAR, which also operates in southeastern Brazil. In 2019 CRH Brazil sold approximately 2.5Mt of cement.

The parties have agreed a price of US$218m, subject to adjustments based on the net financial situation at the closing date, and the contract includes the usual guarantees provided for this type of transaction. Buzzi Unicem intervenes in the transaction to ensure its success, in particular by financing CNC, on an arm's length basis, for a maximum amount equal to the expected consideration. This financial support may occur by using cash as well as credit lines already available.

CRH Brasil Participaçoes SA operates the three integrated plants of Matozinhos, Cantagalo and Arcos Jazida as well as the Santa Luzia grinding plant. The total cement capacity that would be transferred to BCPAR amounts to 2.75Mta.

Published under Cement News