A federal high court sitting in Lagos has given its final approval to the scheme of merger between the Cement Company of Northern Nigeria and BUA Group’s Kalambaina Cement Company.
According to a statement by the group, this comes on the back of “overwhelming shareholder approval” as well as final approvals by the regulators – Securities & Exchange Commission (SEC) and Nigerian Stock Exchange (NSE).
“With this development, the Nigerian Stock Exchange is expected to list the shares of the expanded entity in what has been described by the regulator as the largest deal of the year in Nigeria in 2018 at its recently held NSE CEO Awards,” BUA said.
Speaking on the development, Abdul Samad Rabiu, founder/executive chairman of BUA Group, praised the effort of all stakeholders in bringing the merger to fruition.
He said the expanded CCNN will remain the market leader in north-west Nigeria – the third largest market for cement in the country by consumption, whilst continuing to explore the huge opportunities that exist in the export markets of Niger, Burkina Faso and the West African region.
“Traditionally, the huge cost of transportation to CCNN’s home region from other cement plants in Nigeria – the nearest being about 900km away – has always given us a strategic advantage in that region over competing cement companies and brands,” he said.
“The expanded entity will leverage on the cost and energy efficiency of the newly commissioned Kalambaina Plant whilst providing additional value through its products in terms of better quality, higher yields and a stronger cement than competing premium cement brands.”
With the merger, the total installed capacity of the merged entity is expected to be two million metric tonnes per annum (MTPA).
The development will bring the total capacity of BUA’s cement operations to eight million MTPA as the group recently announced the completion of its three million MTP Obu II Cement Plant in Okpella Edo state.
Get real time update about this post categories directly on your device, subscribe now.