HeidelbergCement has signed an agreement to acquire 68% of the shares in the Tanzanian cement producer Tanga Cement. With this step, the company further strengthens its local business and creates significant synergies with its existing assets in Tanzania.
Through its subsidiary Tanzania Portland Cement, the largest cement producing company in the country, HeidelbergCement already has a good market position in Dar es Salaam in the Eastern part of Tanzania. As part of this transaction, HeidelbergCement secures an important limestone quarry with measured resources for at least 30 years on top of its already existing reserves. The quarry and the associated cement plant with a capacity of 1.3 million t of Tanga Cement are located in the Northern part of Tanzania.
The closing of the transaction is subject to the fulfilment of customary conditions precedents (especially the clearance by several local authorities), which have to be fulfilled or waived within an agreed timeframe. As of today, closing of the transaction is expected in the second quarter of 2022. Upon closing, HeidelbergCement will make a public tender offer to acquire the remaining outstanding shares in Tanga Cement, following Tanzanian law and in alignment with the respective local authorities.
Both companies, Tanzania Portland Cement und Tanga Cement, are publicly listed.
Read the article online at: https://www.worldcement.com/africa-middle-east/26102021/heidelbergcement-strengthens-business-in-tanzania/
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