Camargo Correa SA said Votorantim Cimentos SA will probably accept some of Cimpor-Cimentos de Portugal SGPS SA’s assets in exchange for its shares in the Portuguese company after rejecting a cash bid.
“There is a very strong probability that Votorantim Cimentos SA will accept this offer,” Camargo Correa’s Intercement unit said in an e-mailed statement. Votorantim has decided not to accept Camargo’s 5.5 euro-a-share cash bid for Cimpor, it said.
By splitting up some of Cimpor’s assets, Camargo Correa, Brazil’s second-biggest construction company, and Votorantim, the country’s largest cement producer, will avoid problems with Brazil’s competition regulator, Camargo Correa said.
This solution “will enable us to overcome the competition problems in Brazil and promote, at the same time, the stability and sustainable growth of Cimpor,” said Camargo Correa.
Under the terms of the offer, Camargo Correa plans to transfer its cement, concrete and aggregate assets in South America and Angola to Cimpor in exchange for Cimpor’s assets in China, Spain, India, Morocco, Tunisia, Turkey and Peru.
Votorantim would then receive Cimpor’s assets in China, India, Marroco, Tunisia, Turkey, Peru and Spain -- excluding Cimpor Inversiones SA and Cimpor Sagesta SA -- in exchange for its shares in Cimpor, Camargo said.
Camargo Correa on March 30 offered 2.48 billion euros ($3.2 billion) to buy full control of Cimpor. Camargo already holds 33 percent of Cimpor while Votorantim owns a 21 percent stake.
Camargo said it maintained its original share offer for Cimpor.