Brazil: The Brazilian cement industry is on hold over a US$1.32bn fine likely to be confirmed by the Brazilian Competition Authority (Cade) for cartel practices. A legal battle is likely to follow the final ruling of Cade in a process that would include the mandatory sale of 24% of the cement assets of the companies involved.
Votorantim Cimentos received a US$662m fine and will be compelled to divest 35% of its assets that represent 11Mt/yr of cement capacity, equivalent to 15% of the cement demand in Brazil. Holcim is to be fined US$216m and is required to sell 22% of its assets. Itabira will be fined US$175m and will be required to sell 22% of its assets. Cimpor faces a US$126m fine and the sale of 25% of its assets. InterCement is to be fined US$103m and will be required to sell 25% of its assets. Itambé will be fined US$37.5m and will not have to sell any assets, as the company operates just one cement plant.