“This transaction is about consolidating all out Nigerian operations, all our share holdings in Ashaka, 35 per cent in Unicem and Atlas to Lafarge WAPCO and also putting it with our interest in our South African Operations,” Guilluame Roux told CNBC Africa.
When finalised, Lafarge Cement WAPCO Nigeria Plc will be renamed Lafarge Africa Plc and the new entity will have nationwide coverage in both Nigeria and South Africa with cement capacity of about 12 million tonnes.
“It’s a very large transaction, valued at 1.3 billion dollars which will create a leading sub-Saharan building materials platform listed on the Nigerian Stock Exchange and this will make it the sixth largest listing,” he said.
The company will increase product range and operations in aggregates, ready-mix and fly ash in order to answer the growing building materials demand in sub-Saharan Africa.
“It’s a great time to do this, on the basis of the two strongest economies in sub-Saharan Africa. With Nigeria being number one, with strong fundamentals, high population and low cement consumption which will lead to double digit growth in cement consumption in Nigeria,” he explained.
The group believes that the strong operational track record and management skills within the combined businesses as well as continued support and expertise from Lafarge Group will position the producers to offer a full range of value added solutions to meet customer needs.
“In South Africa, the former largest economy, there is still stable growth outlook with three to four per cent and a wider range of construction solutions that we’ve been providing to the market,” he added.