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InterCement, a company that is part of the Camargo Correa Group, has signed an exclusivity contract with the Companhia Siderúrgica Nacional (CSN) in Brazil.

Intercement is a Brazilian company that is a benchmark in the global construction market. Its extensive portfolio meets different demands of the cement and concrete industry, standing out for its quality and reliability.

CSN is a Brazilian multinational founded in April 1941, it is one of the most efficient integrated steel complexes in the world and operates in five strategic sectors of the economy: steel, mining, logistics, cement and energy.

CSN is interested in acquiring InterCement’s operations in Brazil and Argentina. The preliminary agreement signed will be valid until July 12, 2024. The contract also includes the possibility of purchasing shares representing 100% of its capital. The value of the transaction is part of the current negotiations, but, according to CE Noticias Financieras News, it is valued at around $700 million.

InterCement operates plants in Argentina, Brazil, Paraguay and Egypt, as part of the divestment plan of Camargo Correa’s cement business. Previously, in June 2023, InterCement divested its subsidiaries in Mozambique and South Africa.

CSN seeks to expand its presence in the cement sector and has made important acquisitions in recent years with the goal of becoming one of the leaders in the cement industry, together with Votorantim. If the negotiations have a positive progress, CSN will have 51% of Loma Negra, one of the largest cement companies in Argentina.

In 2021, CSN acquired the assets of Swiss manufacturer LafargeHolcim in Brazil, in a process that received full approval from the Administrative Council for Economic Defense (CADE). As a result, it expanded its capacity by 10 million tons and became the third largest producer.

Votorantim Cimentos is currently the leader of the cement industry in Brazil, which makes up a third of this market. InterCement is the second-ranked cement company, with a market share of 15.5%. CSN became the number three cement company after the acquisition of LafargeHolcim. Should negotiations progress, CSN will be close to being the leader in this industry. The deal depends on approval from the antitrust regulator.

Votorantim and the Chinese company Huaxin were also part of the race as potential buyers of InterCement’s operations. However, Votorantim could only acquire a portion of the business due to limitations imposed by the antitrust institution. The Chinese group would be a new player in this market in the Brazilian country: At the time, Huaxin executives visited the country to talk with InterCement’s senior management.

The biggest challenge to move would be the sale of 51% of Loma Negra. According to sources, there was interest from Argentine rivals in buying the business, but talks did not progress. CSN is also interested in Argentine assets confirmed by sources.

For the holding shareholders, the sale of the entire package would be the best alternative for the heirs, especially because it frees up CCR shares delivered as collateral.

Brazil has 91 cement manufacturing plants controlled by 23 industrial groups that have a capacity of 94 million tons of cement per year on average. Last year, the cement trade in Brazil rose up to 62 million tons, with a small drop of 1.7% compared to the immediately previous year 2022.


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