Cade approves, with out restrictions, the acquisition of LafargeHolcim Brasil by CSN cimentos

CSN Cimentos is fully owned by Companhia Siderúrgica Nacional (CSN), a group that operates in the entire steel production chain, from iron ore mining to production and marketing. The company also operates in the cement production chain, through its grinding plant, located in the municipality of Volta Redonda (RJ) and an integrated factory, located in the municipality of Arcos (MG).

LafargeHolcim Brasil, in turn, is currently controlled by the Holcim Group, which has units in more than 70 countries and whose main service is the manufacture of cement, concrete and aggregates for civil construction.

According to CSN Cimentos, the operation is part of CSN’s strategy of expansion in the cement segment and geographic diversification, with an increasingly comprehensive presence in the national territory, amid the recovery of raw material consumption in Brazil.

For the Holcim Group, the operation, which represents the divestment of its business in Brazil, strengthens its balance sheet abroad, significantly reducing its percentage of indebtedness, allowing the company to invest in other business fronts.

The merger was notified to the municipality in 2021 and, in March 2022, the General Superintendence of Cade (SG/Cade) gave approval for the operation without restrictions. However, in view of the filing of appeals by the third interested party, Cimento Tupi SA, the operation was taken to the Court of the municipality, under the rapporteurship of the counselor Luis Braido.

In his vote, the rapporteur stressed that the merger does not raise relevant competition concerns, given that the market tests, carried out in the investigation of the case, revealed sufficient levels of rivalry and competitive pressure, on the part of other important companies in the market. .

Source: Market Monitor