One industry insider has described the proposed merger of cement makers PPC and Afrisam as 'the integration of two bad businesses into a worse business' ONE industry insider has described the proposed merger of cement makers PPC and Afrisam as "the integration of two bad businesses into a worse business"."It will create the equivalent of a parastatal that will need continuous bailouts from the PIC (Public Investment Corporation) and will force consumers to pay at least 10% more for cement."The PIC holds 66% of Afrisam and 12.57% of PPC. The other major shareholder in Afrisam is Phuthuma Nhleko's Pembani Group with a 30.6% stake.A tie-up between largest cement producer PPC and second-largest Afrisam would create an entity with just under 60% of the local market. In competition analysis, a market share above 35% sets off alarm bells and would offend every Competition Act requirement.That this deal has even been proposed to the PPC board, and has the enthusiastic backing of the PIC, ha...
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