Afrimat said yesterday the acquisition of Lafarge South Africa became unconditional and the deal would raise Afrimat's offering in construction materials by expanding its quarry and ready-mix operations nationally.
The competition authorities approved the transaction yesterday.
Afrimat had entered into a share purchase agreement with a Holcim Group subsidiary, Caricement B.V., in terms of which Afrimat would acquire 100% of the share capital of Lafarge South Africa Holdings.
The acquisition was expected to close by no later than April 24, 2024.
Afrimat CEO Andries van Heerden said the deal was part of their diversification strategy.
“Additionally, access to the fly ash operations provides a foothold into the cement extender market,” he said.
“The grinding plant will allow Afrimat to grind various materials as value-added products for current and new customers, while the cement kilns allow the group to enter the cement value chain competitively.”
Van Heerden also said their efficiency drives and breadth of marketing in the construction materials industry would ensure a contribution at an operating profit level by Lafarge South Africa, further diversifying the group's profitability and long-term sustainability.
CFO Pieter de Wit had been appointed as the integration manager for this process, and he would, together with experienced leadership and the integration team, ensure the process was as transparent and uncomplicated as possible.
“The time is perfect for Afrimat to return to its roots of quarrying and aggregates to support long-term diversified sustainability," said Van Heerden.
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