Argentine Cement Leader Loma Negra Returns to Local Control Amid Market Headwinds

Loma Negra Compania Industrial Argentina Sociedad Anonima US54150E1047

A significant ownership transition is underway at Loma Negra Compania Industrial Argentina Sociedad Anonima, marking a pivotal moment for the nation's leading cement producer. After nearly twenty years under Brazilian control, a majority stake is shifting back to an Argentine-led consortium. This strategic change occurs as the company navigates a challenging economic landscape and reports substantial quarterly losses.

Recent financial results underscore the difficult market conditions facing the industrial group. For the third quarter of 2025, Loma Negra posted a net loss of 8.6 billion Argentine pesos. Consolidated net sales fell by 12.1% to approximately $154 million. A 5.4% decline in sales volume within its core cement and lime business contributed significantly to this downturn.

The company's adjusted EBITDA contracted sharply, dropping 35.1% year-over-year to $36 million. These figures arrive even as the path clears for a transformative shift in corporate ownership. Market observers are now questioning whether the incoming leadership can steer the firm toward a recovery. Some analysts point to a recently signed framework agreement between Argentina and the United States concerning critical minerals as a potential long-term positive, which may foster industrial sector stability and spur new infrastructure investment.

Court Approval Paves Way for Ownership Transfer

The planned change in control has entered its final phase following a crucial legal decision. A São Paulo court recently approved the restructuring plan of Brazilian group InterCement. This ruling removed the last major legal obstacle, enabling the sale of InterCement's 52% controlling interest to the Argentine consortium known as Latcem.

The Latcem group is led by businessman Marcelo Mindlin and includes partners Redwood Capital Management and funds managed by Moneda-Patria Investments. The consortium is already arranging new financing intended to bolster Loma Negra's working capital. This move is designed to ensure operational continuity while a new strategic direction is established under local management.

Market Outlook Hinges on Final Transfer and Demand

The definitive transfer of shares to the Latcem consortium remains the primary catalyst for the company's equity. With a commanding domestic market share of approximately 45%, Loma Negra's fortunes are closely tied to Argentine construction activity. Investors are looking ahead to March 10, 2026, when the company will disclose its full-year 2025 results.

In the interim, the trajectory of cement demand in the first half of 2026 will largely depend on the evolution of state expenditures for public works projects. The completion of the ownership handover and subsequent strategic initiatives from the new controlling shareholders will be closely monitored by the market as key indicators for the company's future performance.

@ boerse-global.de | US54150E1047 ARGENTINE