SAO PAULO (Reuters) – The Court of Cade unanimously approved on Wednesday the purchase of Brazilian assets of the world’s largest cement company, LafargeHolcim, by CSN, without restrictions.
In addition to diversifying the group to the Midwest, the deal transforms CSN into one of the largest cement producers in the country, with a capacity of over 16 million tons per year and rivaling the Votorantim and InterCement groups.
Despite citing significant concentrations in some regions of the country, the councilors of the competition defense body stated that they alone do not prevent the transaction from being approved.
“There is enough rivalry for us not to worry about competition, despite the concentrations being significant”, said the rapporteur of the case, Luis Henrique Bertolino Braido, during the reading of his vote.
The sale included Holcim’s five integrated cement plants, four mills, six aggregates sites and 19 concrete production facilities that are spread across the Southeast, Northeast and Midwest.
“The operation comes after the cement cartel, which is something that worries everyone. It is a concentrated market…But CSN was not convicted in the cement cartel…There is no evidence”, pondered Braido.
Counselor Gustavo Augusto, in turn, said that the biggest proof that there is a rivalry in the market is the fact that “the seventh group (CSN) is buying the third (LafargeHolcim)”.
“The divestment remedy, in this case, would go against the competition”, added Augusto.
The deal was agreed in September last year, for US$1.025 billion, and adds capacity of 10.3 million tons per year to CSN’s cement production. Last year, the steel group had already acquired Elizabeth Cimentos, adding more than 1.3 million tons of annual capacity.
In April, CADE’s General Superintendence recommended approval, without restrictions.
(By Alberto Alerigi Jr.; edited by Paula Arend Laier)
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