The management of Dangote Cement Plc (DCP) has said that it is no longer interested in purchasing stakes in South African Cement manufacturer PPC Limited.
DCP had earlier on September 13, 2017 sent a letter to the Nigerian Stock Exchange (NSE) expressing its interest in acquisition of stakes in the south African company.
But in a dramatic reversal, Dangote Cement has said it is no longer interested in the proposed acquisition. In the letter dated 6, October 2017, the company said, “the management of DCP formally notifies the Board of Directors of PPC that it no longer had an interest in acquiring the entire share capital of PPC limited.”
A leading supplier of cement and related products in southern Africa, PPC has 11 cement factories in South Africa, Botswana, DRC, Ethiopia, Rwanda and Zimbabwe. PPC’s capacity is around eleven and a half million tonnes of cement products each year.
PPC’s Materials business comprises of Safika Cement, Pronto Readymix (including Ulula Ash) and 3Q Mahuma Concrete. PPC’s footprint in the readymix sector has grown to include 26 batching plants across South Africa and Mozambique.
PPC also 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.
Its is not altogether clear if DCP is still interested in buying a portion of the shares of PPC.