Dangote Cement moves to acquire biggest cement producer in South Africa
Dangote cement is pushing its Pan-African expansion to reduce possible regulatory shook from Nigeria.
Alhaji Aliko Dangote, the Chairman of Dangote Industries and Africa’s richest man, told the Bloomberg TV in New York that the Nigerian cement maker has written to PPC Ltd and it is earnestly awaiting their response on the offer.
“We are waiting for them to get back to us, hopefully, early next week. They can be part and parcel of the Dangote Cement story, where we’re going to be in 18 African countries,” says Dangote.
Other parties participating in the bid are Fairfax Financial Holdings Ltd, AfriSam Group Pty Ltd and LafargeHolcim Ltd, while PPC Ltd has stated that it is considering all the bids submitted by potential investors.
Mr Dangote further explained that the need for consolidating South African cement market prompts the company’s decision to take part in the bid. More so, two banks have expressed willingness to provide 100 percent financial requirements.
“The market in South Africa needs consolidation. It’s the right thing for us to go in there and consolidate. The issue is that they are making a bit of a mistake. They are focusing on the highest bidder. They are focusing more on value rather than, ‘What does it have for us going forward?”’
“Two banks have agreed to support Dangote’s offer. They’ll be able to fund us 100 percent,” Dangote stated.
Dangote Cement is already operating in South Africa through Sephaku Cement. Upon successful takeover of PPC Ltd, Dangote would be the largest producer in the country.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: