Buzzi to increase stake in Cement Nacional to 100%

Italy-based Buzzi SpA said it will increase its stake in Brazilian cement producer Cimento Nacional (NCPAR) to 100 per cent from the current 50 per cent as its joint venture partner, Grupo Ricardo Brennand, exercises its put option, according to a statement by the company.

The price will be determined based on existing agreements and may also vary depending on the exchange rate of the real. The total investment is currently estimated EUR290-310m (US$315m-337m) and will be funded with available liquidity.

NCPAR owns five fully integrated cement plants and two grinding centres with a total production capacity of over 7.2Mta.

The implementation of the agreement is subject to approval by the Brazilian antitrust authority (CADE). Buzzi expects the transfer of the stake is likely to occur by the end of the current fiscal year.