Bloomberg reports that Dangote Cement Plc, a Nigerian multinational publicly traded cement manufacturer headquartered in Lagos, has expressed interest in acquiring ARM Cement Ltd, a Kenyan cement company.
According to three anonymous sources, ARM has been exploring the possibility of a sale since October 2017. The Kenyan cement company is partly owned by CDC Group Plc and was placed in administration in August after failing to find a strategic investor to help it manage debts of 14.4 billion shillings ($141 million).
During an interview with Bloomberg, Aliko Dangote, Africa’s richest man and the owner of Dangote Cement, said the company is in talks about the potential acquisition of a company operating in Kenya and Tanzania. He didn’t identify the company, but ARM has assets in both countries.
Dangote Cement expressed interest in ARM back in 2017, but renewed its interest after management of the company was handed over to PricewaterhouseCoopers LLP’s Kenyan unit. The sources however noted that Germany’s HeidelbergCement Ag and LafargeHolcim were parties that considered acquiring ARM. Sources confirmed that Germany’s HeidelbergCement Ag is still in the race to purchase the Kenyan cement company.
Dangote Cement, which recently announced the issuance of its N150 billion Commercial Paper Issuance Program, is engaged in the manufacture, preparation, import, packaging, and distribution of cement and related products across the African continent.