PPC and AfriSam announced that they have entered into formal discussions to assess the merits of a potential merger between the two groups.
Darryll Castle, CEO of PPC explains, “PPC and AfriSam have independently concluded that current market circumstances warrant entering into formal discussions to consider a merger.”
As part of the discussions, PPC and AfriSam will jointly assess the potential benefits of the proposed merger for all stakeholders including the value that can be realised for the shareholders of the two companies.
“Should the proposed merger proceed it will result in the creation of a South African-owned cement producer that is financially stronger, operationally more efficient, has deeper technical capability and is well placed to develop as a major African cement producer,” said Castle.
Implementation will be subject to the necessary regulatory approvals for which timelines have not been finalised. The parties will communicate the outcome of the assessment.