Votorantim to take interest in Cimpor

Brazil's Votorantim Cimentos has agreed a stock swap with Lafarge that will see it take a 17.28% stake in Cimpor.

Votorantim's interest in Cimpor follows the recent US$ 5.5 billion hostile takeover bid by Brazilian steelmaker CSN, which was rejected by Cimpor directors, who this week issued a 72-page document to shareholders outlining reasons why they should reject CSN's hostile offer.

A spokesperson from Lafarge said, "The transaction will be completed in principal through an exchange of the Cimpor shares held by Lafarge for certain Brazilian assets of Votorantim.

"This transaction allows Lafarge to unlock the value of its minority interest in Cimpor, while capturing the best offer available."

Votorantim's interest in Cimpor could now make any acquisition by CSN more difficult and potentially more expensive according to Itau Securities, the securities arm of Brazil's Unibanco.