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
About Votorantim
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.
About
Lafarge
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.
More comprehensive information about Lafarge may be obtained on its
Internet website (www.lafarge.com).
This document does not constitute an offer to sell, or a solicitation of
an offer to buy Lafarge shares.
