Lafarge to merge South Africa and Nigerian units

Lafarge to merge South Africa and Nigerian units
04 June 2014

Lafarge has announced it is to consolidate its African operations by combining its businesses in Nigeria and South Africa. Lafarge will transfer its shares in its Nigerian and South African operations into Lafarge WAPCO Nigeria Plc, which will then be renamed Lafarge Africa Plc.

The combined entity will have a cement capacity of about 12Mt, as well as operations in aggregates, ready-mix and fly ash. Chairman of Lafarge WAPCO, Chief Olusegun Osunkeye, OFR, OON said the transaction will: "provide access to growth in two of the largest economies on the continent. It will mean that our shareholders are invested in a larger and more geographically diverse business, and it will contribute significantly to the economic growth of both our nations. "

The new entity, in which the Lafarge Group will hold a 73 per cent stake, will continue to be listed on the Nigerian Stock Exchange (NSE). Lafarge Africa will be the sixth largest company on the NSE in terms of market capitalisation. In 2013, the combined sales of the two companies to be consolidated reached US$1.25bn and EBITDA totalled US$345m.

 The transaction, which is subject to regulatory authorisation and Lafarge WAPCO shareholder approval, is expected to close in 2H14.

Published under Cement News