Loma Negra on the Verge of Ownership Change: Chinese and Brazilian Companies in the Running

Loma Negra, a cornerstone of the Argentine cement industry, is poised for a significant ownership transition nearly two decades after being acquired by the Brazilian group Camargo Correa. The sale process, managed by JP Morgan, is expected to culminate next week with the submission of offers from potential buyers. Among the contenders are Argentine entrepreneurs Marcelo Mindlin and Daniel Sielecki, who are joining forces for their bid, alongside companies from China and Brazil.

The sale of Loma Negra marks a pivotal moment in the Argentine market, with the transaction potentially exceeding US$700 million. This move is part of Camargo Correa's broader strategy to divest from the cement business, a plan that began with the sale of its Mozambique and South Africa subsidiaries to China's Huaxin Cement Co.

Loma Negra, with a market share close to 45%, has been an emblematic brand in Argentina since its foundation in 1926. Under the leadership of Amalita Fortabat, the company experienced significant growth, expanding its production facilities across the country. The acquisition by Camargo Correa in 2005 for around US$1,000 million marked a new chapter for Loma Negra, which continued to solidify its market leadership in cement production.

As the sale process unfolds, the future of Loma Negra remains a topic of keen interest, with its outcome likely to reshape the landscape of the Argentine cement industry.

Source: verte.tv