In an interview with Chilean newspaper Diario Financiero, conducted by journalist Azucena González, Carmeuse CEO Sébastien Dossogne shared his vision for the company’s expansion in South America following the acquisition of Cementos Bío Bío (CBB). The transaction, valued at approximately $500 million, marks one of the largest M&A deals in Chile this year. His insights reveal a thoughtful strategy rooted in diversification and long-term commitment.
Chile: A Robust Environment for Growth
According to Sébastien Dossogne, “Chile offers a robust environment. The infrastructure is very good, and so is the education. I believe Chile is stable.” The Carmeuse CEO, who has visited Chile over 35 times, emphasized his long-standing connection to the country: “Chile has been on our radar for quite some time”.
This perspective underpins Carmeuse’s confidence in using Chile as a foundation for regional expansion. While some observers may interpret the past decade’s political shifts as signs of volatility, Sébastien Dossogne views them as evidence of institutional health. He believes that all political parties in Chile share a genuine commitment to the country’s development, even if their priorities differ. He adds that Carmeuse is confident in navigating any political landscape by focusing on what’s right for the country and its people.
Why CBB? A Strategic Fit
Carmeuse’s acquisition of 97.1% of CBB was driven by a clear objective: to strengthen its presence in high-growth markets. CBB holds a leading position in Chile and operates in Peru and Argentina. It boasts strong geological reserves, a critical asset in Carmeuse’s line of work, and serves major clients, including copper mines in Chile.
Sébastien Dossogne adds that there is also future potential in lithium, an emerging sector that aligns with global demand for non-ferrous metals. Following the acquisition, non-ferrous products will become Carmeuse’s second-largest end market, marking a significant diversification of its customer base.
Preserving Success, Integrating Expertise
Sébastien Dossogne emphasizes a respectful approach to integration: “If it ain’t broke, don’t fix it.” CBB is a successful company, and Carmeuse’s priority is to understand its operations before making changes.
While Carmeuse brings global expertise in areas like kiln operations and fuel optimization, Sébastien Dossogne acknowledges that “when you acquire a successful business, your first priority is to be humble and understand how it works”, stressing the importance of continuity and mutual learning.
The integration plan focuses on making employees feel comfortable and gradually exchanging best practices: a model Carmeuse has successfully applied in previous acquisitions.
A Platform for Regional Expansion
With existing operations in Colombia, Carmeuse is clearly positioning itself for broader expansion across Spanish-speaking South America. Argentina is seen as an inherently attractive market, and other countries between Colombia and Chile are being considered based on market demand and potential partnerships.
In addition to these markets, Carmeuse also maintains a presence in Brazil, which operates under a separate strategy due to its distinct dynamics.
Customer-Centric Innovation
Beyond geographic expansion, Carmeuse sees opportunities to enhance customer service. Instead of simply delivering raw materials, the company aims to simplify clients’ operations by providing equipment and facilities that improve product usability.
Delisting and Long-Term Commitment
With 97.1% ownership, Carmeuse intends to engage with Chilean market authorities to explore the possibility of delisting CBB. The company’s self-financing model, supported by strong family commitment across generations, remains a cornerstone of its strategy.
Looking ahead, Carmeuse plans to foster collaboration, share best practices, and explore new opportunities with CBB. “We acquired a talented group of people, not just assets. That’s what makes the company successful”, Sébastien Dossogne concluded.
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