Dangote Cement Plc, regarded as the most capitalized company listed on the Nigerian Stock Exchange (NSE), has confirmed its plans to acquire the entire share capital of PPC Limited, South Africa’s leading cement firm.
Dangote, in a notification to the NSE, said it had communicated its interest to acquire the entire share capital of PPC to the board of directors of the South Africa’s firm.
However, Dangote Cement explained that the acquisition talks are still at the preliminary stage and the transaction remains a potential transaction.
Dangote Cement has embarked on expansion of its operations to other African countries.
The Chairman of Dangote Cement, Alhaji Aliko Dangote last May told shareholders that the pan-African diversification programme provided the essential foreign currency and streams of cash to operate the company despite the challenges that characterised 2016.
According to him, the Nigerian economy fell into recession in 2016, inflation peaked at 18.6 per cent, while resurgence in attacks on oil and gas pipelines in South left Ibese and Obajana factories short of fuel.
He, however, noted that the results of strategic decisions taken a year ago enabled Dangote Cement to strengthen its business and consolidate its position in a year when many others in Nigeria and across the rest of Africa have struggled against economic downturn.
Dangote Cement posted revenue of N412.7 billion for half year ended June 30, 2017, up by 41.2 per cent from N292.2 billion in the corresponding period of 2016.