Dangote Cement withdraws acquisition bid for South Africa’s PPC
Dangote Cement Plc, biggest capitalized stock on the Nigerian Stock Exchange (NSE), has said it is no longer interested in acquiring the whole equities of PPC Limited of South Africa.
The Company made this known in a circular sent to the NSE on Friday. It did not give specific reasons why it withdrew from the deal.
Dangote in a statement signed by Mahmud Kazaure, Company Secretary, Dangote Cement Plc, said the decision has been communicated to the Board of Directors of PPC Limited by DCP.
PPC is a leading supplier of cement and related products in southern Africa; with 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.
In a statement addressed to the Nigerian Stock Exchange in September 2017, DCP acknowledged that the entire share capital of PPC is being aimed at, adding that details of the ongoing negotiations will be made public as time goes on.