Published Date : Jun 04, 2014
The world of cement manufacturing is soon to see a big merger – Paris based Lafarge SA (LG) is planning to merge with Switzerland based Holcim Ltd. (PPC). This merger would result into the world’s biggest building material manufacturing facility.
To make this possible, Lafarge SA (LG) will merge its South African and Nigerian assets and form a company that would trade on Nigeria’s stock exchange. The resulting facility would be called Lafarge Africa Plc, the Paris based company states in a statement it published yesterday. This company will also achieve the feat of becoming the sixth largest company listed on the Nigerian stock exchange and would be capable of manufacturing products of nearly 12 million metric tons.
This merger will allow the company to access growth opportunities in tow of Africa’s largest economies and make the shareholder investments spread in a larger and geographically more diverse market.
Lafarge already has operations in some 64 world countries and is adding manufacturing capacities to its Africa facility so as to enable it to seek advantage from the rising infrastructure development activities in developing economies and compensate a fall in construction activities in European countries.
The transaction would include payment of a sum of 200 million dollars in cash and issue of nearly 1.4 million shares of Lafarge Africa to Lafarge SA, the parent company of the firm.
Lafarge’s share value in Nigeria was valued worth 338 billion naira or 2.1 billion dollars as seen yesterday.