Colombian cement company Cementos del Caribe has called a July 29 meeting for stockholders to approve its merger with seven other cement companies, according to local news reports.
Cementos del Caribe will absorb seven other companies: Cementos del Valle, Cementos Paz del Rí, Cementos Rioclaro, Colclíker, Tolcemento, Cementos El Cairo and Cementos del Nare.
Caribe is a subsidiary of Cementos Argos and the move is designed to create a larger company with assets to compete more effectively against multinational firms such as Cemex, according to press reports.
When the consolidation is completed, Cementos del Caribe will have an installed capacity to produce 7.5Mta of cement, half of which will be exported. In addition, the company will have a 50% market share in Colombia and employ some 5000 workers. The other companies’ shareholders will also have to hold meetings to approve the merger, which is expected to take place no later than year-end.