Chinese cement producer West China Cement has taken steps to acquire South Africa’s AfriSam, highlighting the growing push by Chinese industrial groups to expand across African markets as demand weakens in China.
Details of the proposed transaction were disclosed in a notice published on 18 December by Botswana’s Competition and Consumer Authority, which invited stakeholder submissions “for or against the proposed merger”. The consultation period is expected to close within ten days, although financial terms of the deal were not revealed. The buyer is West International New Building Materials, a subsidiary of Hong Kong Stock Exchange-listed West China Cement, claims Buisness Insider Africa.
The move forms part of a broader strategy by Chinese cement producers to seek growth overseas amid a prolonged downturn in China’s property sector, which has curtailed domestic construction activity. Africa has emerged as a key destination. Last year, Huaxin Cement acquired a controlling stake in Lafarge Africa from Holcim for around US$1bn, while West China Cement is already developing cement projects in Ethiopia and Uganda.
AfriSam, a major but unlisted South African cement producer, counts several of the country’s leading financial institutions among its shareholders, including the Public Investment Corporation, Nedbank, Standard Bank, FirstRand and Absa, following years of restructuring.
South Africa’s cement market remains competitive, led by JSE-listed PPC, alongside Lafarge South Africa, owned by Afrimat, and Sephaku, a subsidiary of Dangote Cement. If approved, the deal would further strengthen China’s industrial footprint across Africa.
