The search is on for new investors in Brazil's cement sector
23 April 2021
Brazil's cement market has been the focus of much attention in recent weeks firstly, with the completion of the CRH cement assets in the country to Companhia Nacional de Cimento (CNC), and more recently the unconfirmed reports that Banco Itau BBA is preparing to advise on the divestment of LafargeHolcim's Brazilian unit.
The sale of the Swiss multinational's cement interests in Brazil is expected to raise up to US$1.5bn, according to analysts UBS European Building Materials. These funds are likely to be reallocated into LafargeHolcim's drive to acquire more sustainable building material assets in construction products in European and North American markets. The divestment trend for LafargeHolcim began with sales in Indonesia and Malaysia, and further sales could be required by the group to reduce its carbon footprint at a faster rate.