At two separate court-ordered Extra-Ordinary General Meetings held in Sokoto, shareholders of Cement Company of Northern Nigeria (CCNN:NL) and BUA Group’s Kalambaina Cement Company voted overwhelmingly to approve the merger of the two cement companies, pending final regulatory approval. In what is said to be the biggest corporate merger transaction of 2018 in Nigeria, the shareholder approval (pending final regulatory approvals) sees Cement Company of Northern Nigeria merge with one of BUA Group’s cement companies, Kalambaina Cement Company and further solidifies BUA Group’s drive to being Nigeria’s second largest producer of cement by volume in 2019.
With this shareholder approval, the new CCNN will have a total installed capacity of 2million metric tonnes and is set to be the dominant cement player in the key regional markets in Northern Nigeria with almost unfettered access to key export markets in West Africa.
According to Abdul Samad Rabiu, Chairman, Cement Company of Northern Nigeria and Founder, BUA Group:
“We thank shareholders of both companies who voted overwhelmingly to approve this merger. This deal signposts shareholder confidence in the value proposition of the CCNN-Kalambaina Merger and we are certain that the new entity can compete effectively in the cement industry in Nigeria whilst maintaining its market dominance in this region. The new, enlarged CCNN is a stronger platform to capture significant synergies and create value for the benefit of the shareholders in the form of stronger competitive position, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue” Abdul Samad added.
“Our commitment towards the Nigerian economy remains strong and this new entity further deepens the capital market and is a pointer to the continued resurgence of the Nigerian economy. We remain committed to delivering exceptional value to stakeholders at all times. Innovation, efficiency and best-in-class technology will continue to be the key drivers of our cement business.”