Cement merger not yet concrete

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Published Mar 28, 2017

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Pretoria – The assessment and discussions about a proposed merger between listed cement and lime producer PPC and AfriSam, two of South Africa's biggest cement producers, were still in progress.

PPC confirmed this on Monday in a further cautionary announcement.

It follows PPC in February this year issuing a cautionary announcement in which it disclosed the two companies had entered into a heads of terms agreement to assess the merits of a potential merger between the two companies and to enter into formal discussion about such a merger.

Read also:  PPC proposes merger with Afrisam

AfriSam, which was previously known as Holcim South Africa and was taken over by the Government Employees Pension Fund in December 2011, made a conditional, non-binding proposal to PPC in December 2014 about a merger, but PPC rejected that proposal a few months later.

Shares in PPC dropped 0.6 percent on the JSE to close at R6.66.

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