Brazil’s CSN bids $5.5 billion for Portugal cement maker CIMPOR
21 Dec 2009
One of the largest Brazilian steel producers, Companhia Siderurgica Nacional (CSN) has launched an unsolicited offer for the takeover of Portugal's biggest cement manufacturer Cimentos de Portugal, SGPS SA (CIMPOR) for approximately €3.86 billion ($5.5 billion), a filing to Portugal's securities regulator revealed.
The CSN offer is valued at €5.75 per CIMPOR share, which represents a premium of 5.2 per cent over Thursday's closing price. CSN said that the offer is conditional on obtaining 50 per cent plus one share in the cement. CIMPOR has 672 million outstanding shares.
''The offer is part of the strategy of diversification and internationalisation. Acquiring control of Cimpor will allow access to markets that are already consolidated and to new markets with high growth potential.'' CSN 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 and the turnover is around $3 billion.
Its operations are spread over 13 countries including Portugal, Brazil, Egypt, Spain, China, Turkey, South Africa, Tunisia, Morocco, India, Mozambique, Cape Verde, and Peru (plant under contstruction).
In 2008 CIMPOR acquired 73.6 per cent stake in India's Shree Digvijay Cement Company held by Aditya Birla Group's Grasim Industries. (See: Portuguese cement maker Cimpor acquires 73.6-per cent stake in Grasim's Shree Digvijay Cement)