Displaying items by tag: GCW181
Nigeria: Lafarge Africa made a US$122m offer on 10 December 2014 to buy out minority shareholders in its Nigerian business, Ashaka Cement. The offer follows the US$1.35bn merger of Lafarge Africa's Nigerian and South African businesses, which received approval from shareholders in July 2014.
Lafarge Africa said that as part of the merger deal it had acquired a 30% stake in Ashaka Cement, the trigger point for making a full takeover bid under Nigeria's securities and takeover rules.
Under the terms of the offer, shareholders who accept it will receive 57 Lafarge Africa shares for every 202 held in Ashaka Cement and an additional cash payment of US$0.0111/share. The offer will run from 10 December 2014 to 16 January 2015. Shares in Ashaka Cement have gained 17% in 2014.
The consolidation will enable Lafarge, which faces intense competition in Africa, to accelerate growth on the continent. Lafarge Africa owns60% of Lafarge Wapco, its listed subsidiary in Nigeria, 58.6% of Ashaka Cement Plc and 100% of the Atlas cement company. In November 2014, Lafarge Africa entered into an agreement to buy a 30% stake in United Cement Company from Flour Mills of Nigeria, which will give Lafarge's Nigeria Cement Holdings complete control.
Cade establishes conditions for LafargeHolcim merger
12 December 2014Brazil: The Conselho Administrativo de Defesa Econômica (CADE) has approved, with conditions, the merger of Holcim and Lafarge in Brazil. CADE has stated that the companies would have to sell 31% of their installed capacity. The plants to go are based in the States of Minas Gerais (Pouso Alegre, Arcos, Matozinhos, Santa Luzia) and Rio de Janeiro (Cantagalo, Santa Cruz), which have a total of 3Mt/yr of cement production capacity.
PPC receives merger proposal from AfriSam
11 December 2014South Africa: PPC, South Africa's largest lime and cement maker has said that AfriSam, its competitor, has proposed a merger between the two companies. AfriSam's proposal was conditional and non-binding and prompted PPC's shares to surge on 10 December 2014. This was reported by local media as a sign that the market likes the idea of the merger.
PPC said that its board of directors was currently considering the proposal and would make a further announcement in due course once it has concluded its consideration of the proposal. The firm has been in a state of flux in 2014 due to protracted boardroom wrangling.
Holcim boss says that El Salvador is stalling
11 December 2014El Salvador: The cement industry in El Salvador is expected to grow by just 1% in 2014, according to the executive director of Holcim in the country, Ricardo Chavez Caparroso. Holcim itself will grow very little, with lower exports expected. Investments into property projects have been low and planning permission rules are 'too tight' according to Chavez Caparroso.
Chavez Caparroso believes that the government should come up with a new strategy to boost the cement sector and that housing projects should be supported via clear and well-defined policies, especially given the country's current housing deficit. He added that Holcim hopes to secure a lucrative road contract in the country, which would help its sales.
Tuban plant to start in first half of 2015
11 December 2014Indonesia: PT Holcim Indonesia has said that it expects its new plant in Tuban, East Java, to start operations during the first half of 2015. Spokesperson Deni Nuryandain said that the plant would increase the company's production capacity by 3.4Mt, or 40%. "Our total production capacity will reach 12.5Mt /yr," he said. Deni added that currently, Holcim has started operating its new plants in Narogong, West Java, and Cilacap, Central Java.