Holcim says it has no plans to make a takeover offer for Bamburi Cement in Kenya if competition regulators allow its planned near €30 billion merger with Lafarge. The Switzerland-based cement manufacturing giant and France-based Lafarge are seeking antitrust backing for their merger. Once the transaction is finished, Holcim will have indirect control of Bamburi, which is 58.6% owned by two of Lafarge’s units - Fincem Holding and Kencem, the company said in a statement reported in the Nairobi-based Daily
Holcim says it has no plans to make a takeover offer for Bamburi Cement in Kenya if competition regulators allow its planned near €30 billion merger with Lafarge.
The Switzerland-based cement manufacturing giant and France-based Lafarge are seeking antitrust backing for their merger. Once the transaction is finished, Holcim will have indirect control of Bamburi, which is 58.6% owned by two of Lafarge’s units – Fincem Holding and Kencem, the company said in a statement reported in the Nairobi-based Daily Nation newspaper. In the same published statement, a Holcim spokesperson said, “We have no intention of making a takeover offer for BCL.”
The Competition Authority of Kenya is reportedly examining Lafarge’s influence on cement prices in the country through its stake in Bamburi, the nation’s biggest producer of the building material.
The authority has said Lafarge may have to dilute some of its interest in EAPC if the company is found to have a dominant position in the industry in violation of antitrust legislation.
Kenya, East Africa’s biggest economy, has seven cement producers, including ARM Cement, National Cement, Mombasa Cement, Savannah Cement and Cemtech.
