Brussels, 16/02/2010 (Agence Europe) - On Monday 15 February, the European Commission authorised the proposed acquisition - by way of public bid - of CIMPOR, a Portugal-based cement producer, by Companhia Siderúrgica Nacional (CSN), a Brazilian integrated steel producer.
CSN is a large fully integrated steel producer in Brazil and in Latin America. CSN is also active in mining and logistics and entered the cement business in Brazil in 2009. CSN's European activities mainly concern the sale of iron ore and steel imported from Brazil. CSN also operates a steel processing site in Portugal through its subsidiary Lusosider, where it produces galvanised steel and hot rolled steel. CIMPOR is an international cement group active inter alia in Brazil, Egypt and South Africa. Its European activities are limited to Portugal and Spain. Its core business is the production and sale of cement, but it also produces cement-based products, such as concrete and mortars.
The Commission's examination of the proposed transaction showed that the parties are not active on the same markets in Europe. Also, CSN does not produce nor sell any cement additives in Europe. Given the strong market position of CIMPOR in Portugal, the Commission also examined whether the fact that the new entity would have a broader range of products across a number of markets could allow it to close off competition in any of these markets and concluded that no such effects would result from the transaction. “CSN's presence in any of the steel products in the EEA is minor and it is surrounded by a number of important alternative and competing sources of supply. In any event the parties have no considerable common customer base”, the Commission states in a press release. (O.L./transl.jl).