Raysut Cement Company (RCC), Oman’s largest cement producer has acquired the UAE’s Pioneer Cement for US$172 million. The acquisition will add a further 1.7 to 1.8 million t to the existing capacity of the Raysut Cement Group. RCC said in a statement posted on the Muscat bourne website that this will bring the group’s annual capacity to about 4.7 million t.
Pioneer Cement, which was incorporated in 2004 in Ras Al Khaimah as a joint venture between Ras Al Khaimah Investment Authority and UAE-based Penna Global Investments FZ, started commercial production in July 2006 with a designed capacity of 1.25 million t of clinker and 1.7 million t of cement.
The entire amount that RCC paid for the acquisition was funded by long-term borrowing from a consortium of bankers led by Bank Dhofar. RCC said it has signed a deal for full ownership of Pioneer Cement in which Ras Al Khaimah Investment Authority will retain one share out of 55 000 shares valued at 1000 UAE dirhams (US$272.2) each.
The acquisition is said to come at a time when RCC is facing tough competition from cement companies in the Emirates, which led to a decline in the company’s nine-month sales.
Read the article online at: https://www.worldcement.com/africa-middle-east/05012011/raysut_cement_acquires_pioneer_cement/