Execution of the agreement for the purchase of CRH Brasil by the Brazilian BCPAR joint venture
Today, with the authorization of the Brazilian antitrust authority (CADE) and according to the agreement disclosed on 26 October 2020, the Brazilian Companhia Nacional de Cimento (CNC) has purchased all the businesses of the CRH group operating in Brazil (CRH Brasil and its subsidiaries). CNC is a wholly owned subsidiary of BCPAR, holding company in which Buzzi Unicem owns 50% of the share capital in a joint venture with Grupo Ricardo Brennand. The consideration paid takes into account the price originally agreed of US$ 218 million and the changes in the financial position of the acquired companies occurred from the signing of the agreement.
As planned, Buzzi Unicem has financed CNC, on an arm’s length basis, for an amount of US$ 242 million to support the whole transaction.
With the completion of this acquisition, the changes to the shareholders’ agreement between Buzzi Unicem and Grupo Ricardo Brennand, which have already been disclosed on 26 October 2020 as well, have become effective.
The CRH companies operating in Brazil consist of three full-cycle cement plants and two grinding plants, all of them located in the South-East area of the country. The acquisition will result in a significant strengthening of BCPAR, which, by the way, is also operating in the same market area. In 2020, CRH Brasil sold approximately 2.8 million tons of cement.
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