[Original] Holcim: May Be Sanctioned for Long-term Price Monopoly in Brazil

Cade's investigation found that, Votorantim Cimentos, Intercement Brasil (of Camargo Correa), Itabira Agro Industrial, Cia de Cimentos Itamb Itambé, Holcim Brazil and Portuguese Cement Group have a cement price monopoly in Brazil and have squeezed competitors out of the Brazilian market. However, the companies vehemently deny the charges.

Cade's decision to impose a fine is published as follows:

Votorantim – R 1.5 billion

Intercement Brasil – R 241 million

Itabira Agro Industrial – R 411 million

Cia de Cimentos Itamb Itambé – R 88 million

Holcim – R 508m

Cimpor – R 297 million

The companies controlled more than 85% of Brazil's cement market, Cade alleged, controlling prices and blocking competition, resulting in a loss of 1.4 billion reais.

In addition, in addition to the fines, Cade has ordered the companies to cut 20% of their installed capacity for concrete services in the big market and end cross-shareholdings. The penalty is already much better than 22 – 35% divestiture recommended in January 2014.

It is reported that Cade has been investigating the joint case of Brazilian cement companies for eight years, and the appeal of the companies may last for many years. Votorantim has said it will oppose the decision, claiming that Cade's decision lacks merit. Holcim also said it would defend itself through all available legal means.

At the same time, the Brazilian Portland Cement Association (ABCP), which represents the Brazilian cement industry, and the Brazilian National Cement Industry Association (SNIC) will also be sanctioned.

In 2007, Lafarge had reached an agreement with Cade to pay 43 million reals and agreed to stop anti-competitive practices, so although Lafarge has business operations in Brazil, Lafarge does not appear on the list of joint ventures. Lafarge is currently in the process of merging its international operations with Holcim.