With the pending merger of Holcim and Lafarge, Holcim has answered confusion in Kenya over the future ownership of Bamburi Cement, in which Lafarge has a 58.6% controlling stake. “We have no intention of making a take-over offer for BCL,” Holcim said. “The proposed combination would be structured as a public exchange offer filed by Holcim for all outstanding shares of Lafarge on the basis of a 1 for 1 exchange ratios with an agreement to have equal dividends on a per share basis between announcement and completion…The proposed combination will not effect any changes to the ownership of BCL.”
Infrastructure projects and real estate demand are driving cement consumption in Kenya. The National Bureau of Statistics is reporting an average monthly increase of more than 100 000 t y/y.
Bamburi Cement’s Kenya-Uganda operations, which are currently run as a single cluster, will be managed as two separate organisations, each with a CEO and executive team.
East Africa Portland Cement Company (EAPCC) is planning to set up a KES800 million power generation plant in Kenya. The unit will run on waste gases generated by its Athi River cement facility.
Lafarge has denied holding a ‘dominant position’ after antitrust authorities begin an investigation into the company’s involvement in the Kenyan cement industry.