RIO – CSN agreed to purchase 100% of Holcim in a deal valued at US$ 1.025 billion, the company said in a statement to the market this Friday morning. With the acquisition, the company climbs some steps in the ranking of cement companies in the country.
Holcim is the third-largest cement producer, behind Votorantim and Intercement (formerly Camargo Corrêa), although it only has a 10% market share, according to analysts. This place will be occupied by CSN when the agreement is concluded.
About to leave:Country has lost a multinational every three months since 2018, from industry to retail
With the purchase, CNS Cimento, the steelmaker’s arm for the segment, will add 10.3 million tons of cement to its production capacity, which currently stands at around 6 million tons.
It will be the second acquisition of CSN Cimentos, the steelmaker’s arm for the segment, in less than four months. At the end of June, the company acquired the Elizabeth cement company for more than R$ 1 billion from the Farallon fund.
CSN agreed to purchase 100% of Holcim (formerly LafargeHolcim) in a deal valued at US$ 1.025 billion. The largest cement manufacturer in the world, the Franco-Swiss group had announced in April that it would leave Brazil and planned to sell its assets in the country, which would be worth around US$ 1.5 billion (the equivalent of R$ 8.35 billion).
German automaker stopped producing the A3 in Paraná, in December 2020. Government charges tax credits for the Inovar-Auto program.
After entering Brazil by buying Schincariol, the Japanese group sold its brewery in the country to Heineken in February 2021. Losses in Brazil led the matrix to the first loss in its history. The company claimed that a “profitable and sustainable business in the long term” would be impossible.
The American automaker decided to close the three units in the country, lay off 5,000 people and sell vehicles produced in Argentina here.
Six months after landing in Rio and SP, the American scooter rental company ended its operation in Brazil in January 2020.
The German company stopped manufacturing cars in Brazil in December 2020 and will only produce trucks.
With two stores in SP, a French clothing brand from the same group of Decathlon and Leroy Merlin will close operation this month to invest in more consolidated markets.
The Japanese manufacturer of TVs and cameras closes the factory in Manaus in March, which was sold to the Brazilian company Mondial. She says that the “market environment and business sustainability” led her to leave Brazil.
The Spanish delivery company took its app from Brazil in 2019, a year after arriving in the country.
Swiss pharmacist announced, in 2020, the closure of its factory with 440 employees in Rio within five years. Want to focus on highly complex products.
The Japanese manufacturer stopped selling cameras in Brazil in 2018, amid a restructuring.
In the country since 1953, the American pharmaceutical company reported in 2018 the closure of the São Paulo unit, with 100 employees, and the transfer of production to Puerto Rico in up to three years.
The largest retail group in the world sold 80% of its Brazilian operation to an investment fund. The decision, according to the American network, was part of a global adjustment.
The French chain sold the 12 stores in Brazil to Livraria Cultura amid the drop in sales in the recession.
The British cosmetics brand closed stores and factory in Brazil in 2018 after four years of losses and complained of high tax burden, recession and political instability.
Votorantim and Intercement in the dispute
In addition to CSN, the two largest companies in the country in the area competed for Holcim’s assets. But, for reasons of market concentration, the proposals of the two giants were limited.
According to Reuters, Votorantim presented an offer for units in the Northeast and Intercement, for units in Rio, Espírito Santo and Minas Gerais. The purchase of these units could be allowed by the Administrative Council for Economic Defense (Cade).
Ninth acquisition: Ambipar buys Canadian company and expands international operations
Two other smaller companies also made offers, according to Reuters, Mizu and Cimento Apodi. The sale process is being coordinated by Itaú BBA.
The purchase price may still be adjusted, according to CSN’s note. But it was well seen in the market. Martin Hüsler, an analyst at the Zurich cantonal bank, praised the sale of activities in Brazil, which had “below average” profitability, and considered the sale price “solid”, according to the AFP news agency.
In April, Holcim (then LafargeHolcim) announced that it would leave the country. It is one of the many multinationals that decided to leave Brazil, like Ford and Audi.
Born from the 2015 merger of Swiss companies Holcim and French Lafarge, the group simplified its name in May by abandoning the word Lafarge from its corporate name to go back to being just Holcim. It is the largest cement manufacturer in the world.
In Brazil, the group has operations in nine states in the Southeast (São Paulo, Rio de Janeiro, Minas Gerais and Espírito Santo), Northeast (Bahia, Pernambuco, Paraíba and Rio Grande do Norte) and Midwest (Goiás).
“Relevant operational, logistical, management and commercial synergies are expected, with room for evolution of the product mix and expansion of the customer base,” said CSN Cimento in a note.