Lafarge announces that it will receive Brazilian cement assets in exchange for the sale to Votorantim on February 3rd, 2010 of its 17.28% stake in the Portuguese Cimpor group. The terms of payment depended on the outcome of the public takeover bid for Cimpor.
With these assets, Lafarge becomes one of Brazil's top three cement operators with 7 million tonnes in a buoyant market averaging 5% annual growth.
Already active in Brazil with four plants and one grinding station, Lafarge will now be able to establish new positions in fast-growing regional markets in the Northeast and Midwest, while reinforcing its presence around Rio de Janeiro, which has bright prospects in preparation for the World Football Cup in 2014 and the Olympic Games in 2016.
This acquisition, leveraged by Lafarge's synergies with existing positions and market growth, will have a positive impact on net earnings per share and ROCE as of 2010, and should increase Lafarge's EBITDA in Brazil by €85m as of 2011 and by more than €100m in 2012.
Through this transaction, Lafarge was able to unwind its minority stake in Cimpor while strengthening its position in Brazil, where Lafarge now has 1,200 employees and is active in its four business lines: Cement, Aggregates & Concrete and Gypsum.
The Brazilian competition authorities have been notified of the latest phase of the transaction between Lafarge and Votorantim.
Notes to editors
Votorantim is one of the largest conglomerates in Latin America, operating in sectors such as cement and concrete, energy, steel, metals (aluminum, zinc and nickel), paper, orange juice and financial services, among others.
Votorantim Cimentos, the group's cement and concrete unit, ranks among the world's top ten manufacturers of cement, concrete and aggregates. It is the market leader in Brazil and also operates eight production units outside of the country: two in Canada, five in the United States and one in Bolivia (Puerto Suarez). Votorantim owns 15% of Chile's Cementos Bio Bio, and has a 38% stake in both Cementos Avellaneda in Argentina and Cementos Artigas S/A in Uruguay.
A family-controlled Brazilian company founded in 1918, Votorantim now operates in 16 countries.
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With 78,000 employees in 78 countries, Lafarge posted sales of Euros 15.8 billion in 2009.
In 2010 and for the sixth year in a row, Lafarge was listed in the ‘Global 100 Most Sustainable Corporations in the World'. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.
This document may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding the Company's results or any other performance indicator, but rather trends or targets, as the case may be. These statements are by their nature subject to risks and uncertainties, many of which are outside our control, including, but not limited to the risks described in the Company's annual report available on its Internet website (www.lafarge.com). These statements do not reflect future performance of the Company, which may materially differ. The Company does not undertake to provide updates of these statements.
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