Dangote Cement Plc, Africa’s largest cement producer, at the weekend has withdrawn its interest in to acquire the share capital of PPC Limited-a South African leading cement firm. In a regulatory filing at the weekend, Dangote Cement board of directors stated that it has notified PPC board of directors that it no longer has an interest in acquiring the South African firm’s share capital.
“Shareholders are advised that, on 5 October 2017, the Board received from Dangote a formal withdrawal of its interest in respect of the Proposed Combination,” PPC said in a statement.
Dangote Cement had last month confirmed that it had initiated a bid to acquire the entire share capital of PPC Limited. It, however, noted that the acquisition talks were still at the preliminary stage and the transaction remained a potential one, contrary to reference to the talks in some quarters as ongoing.
Established in 1892 as De Eerste Cement Fabrieken Beperkt, PPC is a leading supplier of cement and related products in Southern Africa. It has 11 cement factories in South Africa, Botswana, Democratic Republic of Congo, Ethiopia, Rwanda and Zimbabwe.
With an annual capacity of 11.5 million tonnes of cement products, PPC’s materials business comprises Safika Cement, Pronto Readymix (including Ulula Ash) and 3Q Mahuma Concrete. Its footprint in the ready-mix sector has grown to include 26 batching plants across South Africa and Mozambique.
Also, PPC produces aggregates; with its Mooiplaas aggregates quarry in Gauteng, having the largest aggregate production capacity in South Africa. PPC Lime, one of the largest lime producers in the southern hemisphere, produces metallurgical-grade lime, burnt dolomite and limestone.
PPC is closely linked to the growth and development of South Africa as it has produced cement for many of the country’s most famous landmarks and construction projects.
PPC gave no reason for the move but a Dangote source said Dangote was concerned about the commercial logic of the deal after the local competition watchdog had scrutinised it. “Essentially we’ll be buying market share subject to stipulations/conditions placed by the anti-competition commission,” the source said. Dangote’s South African unit Sephaku is the country’s largest cement maker.
