© Reuters. File photo: On March 2, 2017, the logo of LafargeHolcim, the world’s largest cement manufacturer, appeared at its headquarters in Zurich, Switzerland. REUTERS/Arnd Wiegmann/File Photo
Authors: Tatiana Bautzer and Carolina Mandl
São Paulo (Reuters)-Brazilian cement manufacturer CSN Cimentos is a subsidiary of steel manufacturer CSN SA; Cimentos Mizu; Two people familiar with the matter said that Cimento Apodi, in which Titan Cement International holds shares, was sold by LafargeHolcim (OTC:) Ltd One of the bidders of the assets.
According to an unnamed person familiar with the matter, Lafarge, the world’s largest cement manufacturer, is expected to receive between US$1 billion and US$1.5 billion in revenue.
According to sources, the goal of these three smaller companies is to acquire most of Lafarge’s business in the country, including 10 production plants.
The person familiar with the matter added that Brazil’s largest cement manufacturers Votorantim Cimentos SA and Intercement Brasil SA also made offers, but due to antitrust restrictions, they had to bid for part of the business.
According to sources, Votorantim has bid for production units in the northeastern region, and bids for production units in the southeastern states of Rio de Janeiro, Espirito Santo and Minas Gerais. Any acquisition must be approved by CADE, the Brazilian antitrust regulator.
Intercement declined to comment. LafargeHolcim, Apodi and Mizu did not respond to requests for comment outside of Saturday’s business hours. Votorantim Cimentos said on Sunday that it had always “focused on market opportunities” but had not bid for Lafarge’s assets.
The source said that the sale is managed by the investment banking department of Itau Unibanco Holding SA, and there will be no second round of bidding. Lafarge will negotiate with each bidder.
They added that the deal may be announced in August.
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