Colombian cement producer Cementos Argos has pulled out of the bidding process for the assets put up for sale by Lafarge and Holcim after evaluating the package.
Earlier this year the company had indicated interest in buying the Brazilian assets to be divested by the Swiss and French cement makers as a result of their upcoming merger. The decision come as the next round of bids are due in early January.
"Brazil is a very important market right now, almost as big as the US, and we would be interested in going there if the right opportunity comes up", Grupo Argos chief executive Jose Alberto Velez told Argus in September.
The primary reason for the decision was the anticipated return on investment, said a company executive. A hefty price tag for the operations along with a slowdown of the Brazilian economy could have discouraged Cementos Argos from establishing itself in a market where larger cement makers' profits have shrunk over the past quarters.
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