PPC and Afrisam have entered into formal talks to assess the merits of a merger between the two cement producers at a time when competition in the industry is red-hot with the arrival of a number of newcomers. The proposed deal will create a South African-owned cement producer that is financially stronger, operationally more efficient and has deeper technical capability, PPC says. The company’s share price jumped as much as 10% to R7.71 on Monday morning, the best level since August. It closed 3.43% higher. The groups had terminated merger talks in 2015 after JSE-listed PPC, SA’s biggest cement maker, decided against the "merits" of such a deal with unlisted rival Afrisam. It had instead focused on developing greenfield and brownfield projects in other parts of Africa. But PPC said on Monday the two parties had concluded market circumstances warranted formal talks to consider the proposed merger. "As part of such discussions, the parties will jointly assess the value that they belie...
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