Mega Conglomerate withdraws bid to acquire Dewan Cement

Pakistan’s Mega Conglomerate Private Ltd (MCPL) has reportedly withdraw its bid to buy controlling shares in two plants of Dewan Cement based in Dhabeji, Sindh and Hattar Industrial Estate, Khyber Pakhtunkhwa. The two facilities have a combined capacity of 2.89Mta.

Dewan Cement is yet to comments on failure of the deal, but markets predict it may be due to high prices and change in dynamic of cement industry in country.

BMA Capital has informed Pakistan Stock Exchange (PSX) that in capacity of manager to the offer, "hereby inform you that as a consequence of the failure of negotiations to acquire voting shares of the Target Company, the Acquirer (Mega Conglomerate) is withdrawing the aforementioned Public Announcement of Intention pursuant to the provisions of Regulation 21(1)(b) of the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations, 2017 read together with the Securities Act, 2015."

Earlier, Bestway Cement and a Chinese Company showed interest in a deal but later declined to proceed further.