RIO DE JANEIRO, March 19 Camargo Correa SA, the
Brazilian family-owned conglomerate that exited several
businesses over the past year, has put a cement unit up for
sale, a column in newspaper O Globo said on Sunday.
According to Globo columnist Lauro Jardim, Camargo Correa
values the unit known as InterCement SA at around 20 billion
reais ($6.47 billion).
The conglomerate has received offers from Mexico's Cemex SAB
and another, unnamed Latin America-based cement
producer, the column said.
Jardim's column did not specify if the bids for InterCement
were non-binding or how advanced the process may be.
A Camargo spokesman declined to confirm the report and said
in an emailed statement that "the group is not pursuing any
The spokesman said that its sale last June of a controlling
stake in power holding company CPFL Energia SA was "the end of a
process of repositioning the group's asset portfolio."
Cemex's press office could not be immediately reached.
In order to reduce debt, the billionaire family that
controls Camargo Correa has been quickly disposing of business
lines it no longer wants.
As part of those efforts, the Camargos in recent years have
discussed fully or partially selling InterCement. The CPFL sale
and a December 2015 sale of fashion brand Alpargatas SA raised
about $2.8 billion for the group.
Reuters reported on Dec. 8 that Camargo Correa was
considering disposing of a partial stake in Loma Negra Cia
Industrial SA, Argentina's No. 1 cement producer and part of
InterCement is Brazil's No. 2 cement producer and a leading
producer in Portugal, Mozambique and Cape Verde.
Two people familiar with Camargo Correa's strategy told
Reuters in August that the conglomerate tried to sell a minority
stake in InterCement a couple of years ago and also considered a
listing of the company outside Brazil.
Camargo Correa, whose engineering unit was one of several
big Brazilian builders ensnared in a massive corruption probe
related to business with state companies, has been recovering
rapidly from the adverse effects of the scandal, in which it
sought a plea deal.
(Reporting by Guillermo Parra-Bernal; Editing by Phil