Camargo Correa Details Cimpor Bid

InterCement, the cement unit of Brazil’s Camargo Correa, plans to offer Votorantim Cimentos an asset swap to buy Votorantim out of Cimpor, and would also keep the Cimpor name if it gains the full control of Cimpor it seeks, InterCement says. Though InterCement is sticking to a EUR5.50 per share bid for Cimpor, implying a EUR2.4bn ($3.1bn) maximum price, it notes Cimpor would remain a Portuguese company, with the same brand. Noting that Cimpor’s ownership is fragmented, InterCement would unify all of its cement operations under Cimpor if its bid is successful. InterCement would first transfer to Cimpor all of its assets in South America and Angola, in exchange for most of Cimpor’s assets in China, Spain, India, Morrocco, Tunisia, Turkey and Peru. InterCement would then offer those international assets to Votorantim, in exchange for its 21.2% of Cimpor’s shares. Camargo Correa claims to have discussed the matter with Votorantim, and says there is a “very strong possibility” that Votorantim would accept. InterCement announced in April the offer for the 444m (66.75%) shares it doesn’t own in Cimpor. Cimpor later said the offer was too low, and lacked enough detail.