Loma Negra the largest Argentine cement producer, reported that an extension was signed until December 16 to negotiate its sale, within the framework of the exclusivity period of the process, with its main interested party, National Steel Company (CSN)a Brazilian steel giant, which is emerging as the main candidate to stay with the company.
The company’s controlling shareholders are also Brazilian: the group InterCement which was presented in a sort of bankruptcy in the neighboring country and belongs to the family Camargo Correa. The exclusivity contract for the negotiation of the sale of Loma Negra was postponed on successive occasions throughout this year.
“Our indirect controlling shareholder, InterCement Participaçõesinformed the market in general, in the context of the process organized by the BTG Pactual Bank and of the Extrajudicial Recovery initiated by InterCement and other companies in the group, that InterCement and its controlling shareholder Mover Participações SA signed an addendum to the agreement published on September 18, 2024. The right of exclusivity with CSN in relation to a possible acquisition of shares representing 100% of its share capital runs until December 16“Loma Negra said in a statement sent to the National Securities Commission (CNV).
“InterCement reported that there is no signed document that generates obligation or commitment by itself or its shareholder Mover Participações SA or its subsidiaries in relation to the potential transaction. It is important to highlight that Loma Negra is not part of the Extrajudicial Recovery Plan and will keep its investors and the market in general informed, and reiterates its commitment to transparency,” said the letter signed by Marcos I. Gradinresponsible for Relations with the Loma Negra Market.
In the midst of InterCement’s negotiations with CSN, An Argentine businessman interested in the cement company had appeared on the scene: Marcelo Mindlinowner of Pampa Energy. A possible acquisition would allow it to integrate the production chain with its construction company Shakewhose works include the work of the Néstor Kirchner gas pipeline and the reversal of the Norte gas pipeline, together with Techint. But The exclusivity contract with CSN distances Mindlin from this possibility.
Loma Negra was acquired by Camargo in 2005 for US$ 1,000 million. Founded in 1926 by the familia Fortabatin 1976 it passed into the hands of Get startedone of the women with the greatest fortunes in the country. Under his leadership, profits multiplied.
Today, the cement company has nine plants and a production capacity of 7.6 million tons of cement per year. Its market share is 45%.
Last year, its turnover amounted to $422,161 million with an EBITDA (margin before taxes and amortization) of $100,351 million. Dispatch 6.4 million tons of cement, a figure that will not be reached this year due to the collapse in sales due to the slowdown in public works and the drop in activity that impacts construction, which presented a drop in 18% in August, surveyed by the National Institute of Statistics and Censuses (Indec).
Cement shipments remain below the pandemic and pre-pandemic levels. In October, They suffered the sixth collapse so far in 2024con a decrease of 20% year-on-year. The monthly retraction was 1,1% compared to September and a contraction of 26,2% so far in 2024, according to the latest statistics published by the Portland Cement Manufacturing Association (AFCP).
For its part, InterCement preserves plants in Brazil, after leaving factories in Paraguay, Mozambique and South Africa, as part of its disinvestment process. In this framework, on May 1 it had signed the exclusivity agreement with CSN, which was replaced by successive extensions.