Brazil-based cement-manufacturer Votorantim Cimentos, through its Spanish subsidiary Corporacion Noroeste, has signed an agreement for the full acquisition of Cementos Balboa.
Cementos Balboa has a modern integrated cement plant at Alconera in the Extremadura region of Southwest Spain, with an installed production capacity of 1.6 million tons of cement per year.
Marcelo Castelli, global CEO of Votorantim Cimentos, said the transaction is part of the company’s strategy for growth and positioning in Spain and will reinforce its presence in the country.
Votorantim Cimentos is an international company that operates in the areas of construction materials, mining, agricultural inputs, co-processing and waste management. With 256 industrial units worldwide, the company ended 2020 with an installed production capacity of 53 million tons of cement.
The company has been present in Spain since 2012 and currently operates four integrated cement plants, two cement mills, a mortar plant and several concrete and aggregates plants, operating in the regions of Andalusia, Canary Islands, Castile and León, Extremadura and Galicia.
Completion of the transaction is subject to the fulfillment of conditions precedent, including approval by regulatory authorities in Spain. The two companies will continue to operate as separate businesses until the transaction closes. The purchase price has not been disclosed.
In April this year, long-term institutional investor Votorantim Cimentos and Caisse de dépot et placement du Québec (CDPQ), announced the completion of the transaction to combine their cement operations in North America, significantly strengthening their position in Canada and in the United States by increasing cement production capacity, operating efficiencies and expanding the distribution network.
