What is behind PPC’s stalled merger with AfriSam?
The deal is shrouded in mystery, but it’s safe to say transformation of SA’s cement industry is playing a big part
JSE-listed cement producer PPC’s future is shrouded in mystery amid a lack of detail around its proposed merger with unlisted cement maker AfriSam. But what is certain is that transformation of SA’s cement industry is playing a big part. What this might mean to the country’s competition authorities, however, is less certain. In a hazy operational update for the first quarter ended June, SA’s largest cement producer says it is committed to unlocking long-term, sustainable shareholder value. "In light of this, we continue to evaluate a potential merger between PPC and AfriSam," says PPC. It is not clear who is driving the merger proposal and who objects to it. The two companies have new CEOs. In PPC’s case this is the third CE in less than three years. The group’s share price has fallen from more than R50 a share in early 2008 to less than R5 now.This came in the wake of the global financial crisis, but other forces have also been at play. Part of this is from increased competition in...
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