Rival bid for Cimpor

14 January 2010

A Second Brazilian conglomerate has put forward a proposal to merge with Portuguese cement manufacturer Cimpor. In a softer approach than the hostile bid launched by CSN in December Camargo Corrêa has announced plans to acquire between a minority stake in Cimpor through private channels, rather than a public stock market offer.

The offer to acquire a sub-50% stake in Cimpor is conditional on Camargo Corrêa first securing between 15% and 25% of the company's share capital and voting rights.

In a bid to sweeten the deal, Camargo Corrêa will pay an extraordinary dividend of € 350 million to Cimpor's remaining shareholders, following the acquisition. If Camargo Corrêa acquired just under 50% of Cimpor, this would equate to a payment of about € 1,05 per share to the remaining owners.

Cimpor described the offer as "Preliminary and non-binding", and said it was being used as the basis for on-going merger talks between the two companies.


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Andy Brown Editor, Editorial, UK - Wadhurst Tel: +44 (0) 1892 786224 E-mail: [email protected]
Neil Gerrard Senior Editor, Editorial, UK - Wadhurst Tel: +44 (0) 7355 092 771 E-mail: [email protected]
Catrin Jones Deputy Editor, Editorial, UK – Wadhurst Tel: +44 (0) 791 2298 133 E-mail: [email protected]
Eleanor Shefford Brand Manager Tel: +44 (0) 1892 786 236 E-mail: [email protected]