Nigeria: Dangote Moves to Acquire Kenya Cement Firm, ARM

Photo: Dangote
Dangote group.
9 November 2018

Dangote Cement Plc, Africa's biggest producer of cement, has expressed interest in acquiring Kenyan rival, ARM Cement Ltd, Bloomberg said it gathered from people knowledgeable about the development yesterday.

Aliko Dangote, owner of Dangote Cement, said in an interview with Bloomberg that the company is in talks about a potential acquisition of a company with operations in Kenya and Tanzania. While he didn't identify the company, ARM has assets in both countries, as does Switzerland-based LafargeHolcim Ltd.

ARM has been exploring a sale since at least October 2017. The company, part-owned by CDC Group Plc, was placed in administration in August after failing to find a strategic investor to help it manage debts of $141 million.

Also, a source with direct knowledge of the matter told Reuters that Dangote Cement was approached about a potential transaction by advisers to the debt-laden ARM Cement. The source said Dangote Cement has not conducted due diligence on ARM Cement.

Dangote Cement first signalled its interest in ARM last year and renewed its attention after management of the company was handed over to PricewaterhouseCoopers LLP's Kenyan unit, said two of the people.

ARM's creditors in October approved the sale of some assets to cut debt. The creditors did not identify which subsidiary or assets would be sold, or the possible value of a sale, under a rescue plan, designed to keep the company operational.

Dangote Cement spokesman Carl Franklin declined to comment and PWC administrator George Weru said he couldn't immediately comment when contacted.

See What Everyone is Watching

More From: Vanguard

Don't Miss

AllAfrica publishes around 600 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.