Votorantim Cimentos SA, Brazil's largest cement producer and a member of the Votorantim Group, agreed to buy yesterday the 17.28 per cent stake in Portuguese cement maker Cimentos de Portugal SGPS SA (CIMPOR), held by France's Lafarge SA, the world leader in building materials.
The deal frustrates Brazillian steel maker CSN's hostile bid for CIMPOR.
According to a statement issued by Lafarge, the transaction will be completed in principle through a swap of the CIMPOR shares held by Lafarge for certain of Votorantim's assets in Brazil.
The value received by Lafarge for its stake will depend on the evolution of the outstanding tender offer for the CIMPOR shares and on Votorantim's future decision about whether to keep the shares received as part of the exchange, the statement further said.
Lisbon-based CIMPOR is the largest Portuguese group producing cement, hydraulic lime, aggregates and concrete products. The company's total installed cement capacity is over 31 million tonnes per annum with operations spread over 13 countries including Portugal, Brazil, Egypt, Spain, China, Turkey etc and also India (Shree Digvijay Cement Co Ltd). The company's annual turnover is around $3 billion.
CIMPOR's major shareholders include Portuguese construction major Teixeira Duarte (22.9 per cent), French cement giant Lafarge (17.3 per cent), Portuguese billionaire Manuel Fino (10.9 per cent), Banco Comercial Portugues (BCP) Pension Fund (10 per cent) and others.