Dangote Cement, Nigeria and Africa’s largest Cement maker, has ditched plans to acquire South African Cement Company, PPC.
A report by Reuters revealed that PPC confirmed that Nigeria’s Dangote cement had withdrawn its interest to tie-up with the South African firm.
The news sent shares of PPC crashing today, with the company’s share price down 11 percent as at mid-day today.
Dangote was looking to acquire PPC in an all-share merger bid that values the firm at $700 million, according to local rival afrisam.
But the cement making mogul has admitted that he has no plans of overpaying for PPC because overpaying, he says, might be a problem for Dangote shareholders, who are his priority.