Turkey's Limak Cement plans up to €1bn African acquisition
Turkey’s Limak Cement is in talks on the acquisition of cement operations in Africa which could be worth up to €1 billion, a senior executive told Reuters, though there was no certainty a deal would be agreed.
Limak, which already has interests in Mozambique and Ivory Coast, has signed a confidentiality agreement regarding the purchase from an international cement company.
Limak Cement Group General Coordinator Gultekin Aksuyek said: “A global cement firm is considering selling its facilities in three African countries… We are seriously interested and have signed a confidentiality agreement. I think we will know in five to six months.”
“As Turkish companies, we were very late in penetrating the African market,” Aksuyek said, adding that an unnamed bank was positive about financing the acquisition.
Limak has 10 cement factories in Turkey and is building cement grinding and packaging facilities in Mozambique and Ivory Coast, which are expected to come online in 2016 and 2017, part of broader expansion plans by the group.
“As the cement arm of the holding, we decided to lead the group into Africa. Our energy arm is working on their plans for Mozambique and construction arm is considering Ivory Coast,” Aksuyek said, noting he expected Limak Cement’s sales volume to grow around 4% in 2016 to 8.8 million tonnes.
Among Africa’s major cement makers, Dangote Cement has an annual production capacity of 45 million tonnes. Other major players in Africa include Lafargeholcim , Germany’s Heidelberg and South African-based PPC.