China’s biggest cement maker Anhui Conch Cement Co is to acquire a smaller peer, people close to the deal said.
The company, together with IFC, an arm of the World Bank Group, plans to take over Auhui Chaodong Cement Co.
Chaodong Cement is based in the central Chinese province of Auhui just like the bidder Conch Cement. They are both controlled by the local government. The former has always suffered the fierce competition brought by the larger Conch Cement.
IFC, together with a unit under New York-based Morgan Stanley, just won the nod from China’s State-owned Assets Supervision and Administration Commission to acquire a minority stake in Conch Cement, the Shanghai-listed company announced on May 9.
IFC is to buy a 3.73 per cent stake and Morgan Stanley a 10.61 per cent.
After the deal, which still has to receive the green light from the Ministry of Commerce, the company’s parent Conch Group is continuing to own a 35.24 percent stake.