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Dangote Cement, Nigeria and Africa’s largest Cement maker has ditched plans to acquire South African Cement Company, PPC.

Here is an excerpt from a Reuters report

PPC said on Friday that Nigeria’s Dangote Cement has withdrawn its interest to tie-up with the South African firm, sending its shares more than 11 percent lower.

Africa’s richest man Aliko Dangote joined the race in September to buy South Africa’s biggest cement producer. PPC is already the subject of an all-share merger bid that values the firm at $700 million by local rival AfriSam.

Shares in PPC fell 11.63 percent after the announcement, before recovering some ground to trade 9.77 percent lower at 5.82.

When interviewed in September, Africa’s richest man, Aliko Dangote said that the market in South Africa was in need of consolidation, essentially confirming his acquisition bid. Despite understanding that there were other bidders, he opined that thinks his company should bid sensibly in a way that will benefit the shareholders of both PPC and Dangote Cement.

Aliko Dangote also thought PPC wanted a bigger company that will not just seat and consolidate, but actually needs a player who is already in the cement business with the right focus to make the company better. He also admitted that he had no plans of overpaying because overpaying, he says, might be a problem for Dangote shareholders, who are his priority.

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