Canada/US: Brazil-based Votorantim Cimentos says it has agreed to form a new 83%-owned subsidiary based in Toronto to combine the assets of McInnis Cement and St Mary’s Cement. Caisse de dépôt et placement du Québec (CDPQ), the current owner of McInnis Cement, will hold a 17% stake in the joint-venture. The group says that it will manufacture, distribute and sell building materials in the companies’ existing regions in Canada and the US.
Votorantim Cimentos said, “The company believes this transaction will result in the creation of a competitive, nimble and highly efficient business that will be better able to supply cement to customers in Canada and the US. In addition to strengthening the company’s presence in North America by expanding its current cement production capacity by 2.2Mt/yr and combining the company’s Great Lakes-focused distribution network with McInnis Holding’s complementary distribution network in Eastern Canada and the Northeastern USA, the Company anticipates the Transaction will result in substantial synergies.”
The transaction is subject to approval by regulatory authorities in Brazil, the US and Canada.