New Juan Minetti Group Strengthens Holderbank's Market Position in Argentina's Cement Sector.BUENOS AIRES Buenos Aires (bwā`nəs ī`rēz, âr`ēz, Span. bwā`nōs ī`rās), city and federal district (1991 pop. , Argentina--(BUSINESS WIRE)--May 18, 1999-- Switzerland's Holderbank Financiere Glaris Owns 45% of New Listed Entity Which Marks Country's First Merger of Two Public Companies - Credit Lyonnais Securities (USA) Inc. and Aguirre y Gonzales of Buenos Aires Advise on Transaction Holderbank Financiere Glaris Ltd., ("Holderbank"), the world's leading supplier of cement and aggregates, has strengthened its market position in Argentina by effecting a merger between Holderbank Group's, Corcemar S.A., and Juan Minetti S.A., forming the Juan Minetti Group, now the Number 2 producer of cement in Argentina. As previously announced, Holderbank owns a 45% stake in the newly combined company, which is estimated to have a 40% market share throughout Argentina with 1999 sales that are expected to approximate USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 300 million. The merger is the first in Argentina between two publicly listed companies, said Eric Schindler, Head of Latin American Corporate Finance for Credit Lyonnais Securites (USA), headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY, USA. Credit Lyonnais Securities, along with Aguirre y Gonzales, of Buenos Aires, jointly advised Holderbank, which has assumed overall responsibility for the combined operation Noun 1. combined operation - a military operation carried out cooperatively by two or more allied nations or a military operation carried out by coordination of sea, land, and air forces . "Being the first of its kind, the merger was a complex transaction and required several decisions by the Comision Nacional de Valores in Argentina for which there was no precedent," commented Mr. Schindler. "We were extremely pleased with the willingness and cooperation of all parties involved." The new Juan Minetti Group operates five existing cement plants plus a new clinker clink·er n. 1. The incombustible residue, fused into an irregular lump, that remains after the combustion of coal. 2. A partially vitrified brick or a mass of bricks fused together. 3. grinding station now under construction at Campana, in the greater Buenos Aires Greater Buenos Aires (Spanish: Gran Buenos Aires) is the metropolitan area of the city of Buenos Aires, Argentina, which consists of the Federal Capital and the following 24 partidos (administrative subdivisions) of the Province of Buenos Aires: The new company will be listed on the Buenos Aires Stock Exchange Buenos Aires Stock Exchange (Bolsa de Comercio de Buenos Aires) Argentina's major securities market. . The alliance is significant for a number of reasons. Holderbank in 1998 raised its interest in Corcemar from 25 percent to 75 percent, thus creating a basis for the merger with Juan Minetti. The move was both forward looking and of key strategic importance. The two companies operate in overlapping markets, thus the merger also offers synergy potential. In addition, the new group will be able to concentrate cement production at modern facilities, and, because of shorter distances to the main markets also enhance and speed distribution. "This important transaction is another indication of the long term potential that the region holds for our client and other strategic investors," said Credit Lyonnais Securities' Mr. Schindler. Argentina is among Latin America's foremost growth markets. Cement consumption has grown by an average of 8 percent annually over the past decade and is expected to be at around 8.0 million tonnes for 1998. This makes Argentina the second biggest cement consumer in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. after Brazil. The country's intact economic potential and generally high levels of pent-up demand for infrastructure projects point to above average growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in the future, once the current cyclically induced economic slowdown comes to an end. Argentina's ongoing economic integration into MERCOSUR also promises to be a source of growth. The new Juan Minetti Group fits ideally into Holderbank's network of companies in the region and further underscores the commitment over recent years to building up and expanding operations here. Holderbank has majority and minority shareholders in over 60 countries on all continents. Credit Lyonnais is a full-service worldwide financial institution with assets of approximately $250 billion and operations in more than 70 countries. Credit Lyonnais Securities (USA) Inc. is a subsidiary of the Paris-based bank, engaged in investment banking and broker/dealer activities, and based in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Credit Lyonnais Americas encompasses all the bank's activities in the Western Hemisphere Western Hemisphere Part of Earth comprising North and South America and the surrounding waters. Longitudes 20° W and 160° E are often considered its boundaries. . |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion