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Cimpor rejects Brazilian offer – more on the table?

World Cement,

On 18 December, Brazilian steelmaker CSN put forward an offer to buy Portuguese cement company Cimpor.

Lafarge had offered the Brazilian company its 17% stake in Cimpor, prompting CSN to attempt to acquire the remaining shares. The company has reportedly been in talks with other shareholders, including construction company Teixeira Duarte (23% stake) and bank Caixa Geral de Depositos (9.6% stake). However, at this stage the offer has been firmly rejected.

CSN is offering €5.75/share, amounting to €3.86 billion for the whole company. This ‘significantly undervalues Cimpor’, according to a statement from the company, which calls the takeover-bid ‘hostile’ and ‘opportunistic’. In this statement, Cimpor declares that the Board of Directors has no intention of selling its shares. However, some analysts are saying that the rejection is not so forthright as the statement suggests.

CSN is a steelmaking company that wishes to diversify into construction. In the wake of the proposal’s rejection, Cimpor’s shares have remained strong amidst speculation that the offer will be raised and countered by competitive Brazilian companies, such as Votorantim. Time will tell whether the company will consider further offers, or stick to its decision.

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