The International Resource Journal: Brazil Votorantim to buy stake in Portugal's Cimpor

Brazil Votorantim to buy stake in Portugal's Cimpor
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admin on 04 February, 2010 09:07:00
 
IRJ Feb 4 - Brazilian cement maker Votorantim Cimentos said on Wednesday it
reached a deal to buy a stake in its Portuguese counterpart Cimpor
Votorantim Cimentos, a unit of Brazilian industrial conglomerate Grupo
Votorantim, said in a securities filing it has agreed to a stock swap with
France's Lafarge (LAFP.PA) for a 17.28 percent stake in Cimpor.
The Brazilian company also said it reached an agreement with Portuguese
state-run bank Caixa Geral de Depositos to win control of 9.6 percent in Cimpor.
Under terms of the deal Votorantim would have to remain a minority shareholder
in Cimpor.
At current market prices, a 17.3 percent stake in Cimpor is worth about 716
million euros ($1 billion).
Cimpor is already the target of a $5.5 billion takeover bid by Brazilian
steelmaker CSN, currently a minor player in Brazil's burgeoning cement market.