CSN makes bid for Cimpor
By Chris Sleight21 December 2009
Brazilian conglomerate Companhia Siderúrgica Nacional (CSN) has made a € 3.84 billion cash offer to acquire Portuguese cement manufacturer Cimpor.
The company says that combined with its existing businesses, this would make it one of the largest cement manufacturers in the world, with an annual capacity of 36 million tonnes. As well as leading the Portuguese market, it would have strong positions in Brazil, Egypt, China, Spain, Turkey, South Africa, Tunisia, Morocco, India and Peru.
CSN CEO Benjamin Steinbruch said, "Within CSN's business focuses, this is one of the best diversification and internationalisation opportunities we have come across in markets with enormous growth potential."
Cimpor has not commented on the offer, which appears to be unsolicited, and was not discussed with its board prior to its announcement. The company does not have a single controlling shareholder. Its three largest owners are Portuguese contractor Teixeira Duarte (22,9%), cement producer Lafarge (17,3%) and Portuguese businessman Manuel Fino (10,7%).
Cimpor has until the end of this week to make a formal response to the bid.