AfriSam is confident that its proposed merger with SA’s largest cement maker, PPC, has the potential to create significant benefits for all stakeholders. African cement markets have changed drastically in the past decade, with global and regional cement powerhouses negatively affecting PPC and AfriSam operations, it says. "Both companies have recently commenced new businesses or commissioned new capacity in the rest of Africa. This provides significant growth opportunities and market diversity but does present start-up risks and liquidity challenges," Phuthuma Nhleko, AfriSam chairman, said on Wednesday. Consolidation in world cement markets had included the merger of Holcim-Lafarge and Heidelberg-ItalCementi. "This is why we believe that a merged South African national champion, with strong empowerment credentials from AfriSam and PPC’s existing black shareholders, will not only be competitive in this changing market but will be able to pursue empowerment and social agendas that ar...
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