The board of directors of Portuguese cement company Cimpor, which is controlled by Brazilian group Camargo Corrêa, has approved a merger of Cimpor’s operations in Brazil with those of InterCement, a cement company that is part of the same group and which recently merged with Cimpor, the group said in a statement.
“The merger of these two companies in the Cimpor universe will make it possible to create joint value, promoting synergies, leading to improved operating efficiency and the quality of services offered to the Brazilian market,” Cimpor said in a statement filed with Portuguese market regulator CMVM.
The merger follows the group’s announcement that the valuations of assets to be swapped between Cimpor, InterCement and Votorantim requires that Cimpor pay 382 million euros to InterCement as an adjustment for the plant swap carried out last year.
According to Cimpor in a recent statement, specialists estimate that the cement market in Brazil will post average annual growth of around 6 percent over the next five years, bolstered by an upturn in the real estate market, especially because of a need to overcome the country’s housing deficit and investments being made to overcome its the country’s historical lack of infrastructure.
In Brazil, Cimpor said, following the recent conclusion of the new grinding unit in Cubatão (800,000 tons in the São Paulo region), a number of other projects are still underway, such as a new co-processing unit in Ijaci – Minas Gerais (2013), a plant in the North of the country (2016), as well as projects in Apiaí – São Paulo (2013). (macauhub)