Aliko Dangote has targeted Kenyan producer believed to be ARM

Aliko Dangote has targeted Kenyan producer believed to be ARM
09 November 2018

Dangote Cement is understood to be in talks to buy the troubled Kenyan cement maker ARM.

This follows an interview of Aliko Dangote by Bloomberg News in which he said: "There is a company which... has operations in Tanzania, Kenya and Rwanda and we are talking to the company to see if we can take it over," said Mr Dangote.

ARM was not named in the discussion, but it is the only cement producer operating in the three markets that were mentioned. ARM has integrated cement plants in Kaloleni and Kitui and a grinding plant in Athi River in Kenya. The company also operates an integrated plant in Tanga and a grinding plant in Dar Es Salaam, Tanzania. Its portfolio is completed with the Gitikinyami grinding plant in Rwanda.

ARM is currently in administration and its business affairs are being managed by accounting company PricewaterhouseCoopers.

Dangote Cement had announced plans in 2016 to build two 1.5Mta integrated cement plants in Mombasa and Kitui, Kenya, but had delayed construction last year to enter the market in 2021. Dangote already operates a 3Mta cement plant in Mtwara, Tanzania.

When ICR tried to ascertain whether Dangote Cement could confirm that it was in negotiations to buy ARM, a spokesperson for the Nigerian cement producer said, "It (Dangote) was frequently asked to look at assets that might be for sale".

Published under Cement News