08 Oct 2018

Vicat enters Brazil without going for a bargain

Vicat SA (VCT:PAR) | 0 0 1.9% | Mkt Cap: 2,972m

- Felix Brunotte
- 3 pages

The EV/t of cement is €145, without assigning any valuation to concrete and aggregates activities, which has to be compared to our replacement-based valuation of €137/t of cement capacity, meaning that Vicat did not go for a bargain. In September 2018, Buzzi Unicem signed an agreement aimed at acquiring 50% of BCPAR SA. The EV/capacity for this was €120/t. Overall, we question the discrepancy in the EV/t in the two deals in Brazil.

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Vicat enters Brazil without going for a bargain

Vicat SA (VCT:PAR) | 0 0 1.9% | Mkt Cap: 2,972m

Published: 08 Oct 2018
Author: Felix Brunotte
Pages: 3

The EV/t of cement is €145, without assigning any valuation to concrete and aggregates activities, which has to be compared to our replacement-based valuation of €137/t of cement capacity, meaning that Vicat did not go for a bargain. In September 2018, Buzzi Unicem signed an agreement aimed at acquiring 50% of BCPAR SA. The EV/capacity for this was €120/t. Overall, we question the discrepancy in the EV/t in the two deals in Brazil.