Turkish conglomerate OYAK has agreed to acquire Brazilian cement firm InterCement’s units in Portugal and Cape Verde for around $795 million, a source close to the matter said on Friday.
The deal, which includes three cement factories, two mills and other assets operating under its brand as well as that of Portugal’s Cimpor.
InterCement will keep its operations in South America as well as in Egypt, Mozambique and South Africa after the transaction. Camargo had considered an initial public offering of its operations in Europe and Africa, Reuters reported earlier this year, expecting to replicate the success of the IPO of its Argentinian unit, Loma Negra Compania Industrial Argentina.
But Camargo decided it could obtain a higher price in a sale of its largest units to a strategic investor, the source added. “This transaction is part the debt reduction plan previously announced by InterCement and Cimpor in response to an adverse market context in South America, particularly Brazil,” InterCement said in a statement.