Labour

Turkey’s Limak Cement plans up to 1bn euro African acquisition

Published

11 years ago

December 17, 2015

Turkey’s Limak Cement is in talks on the acquisition of cement operations in Africa which could be worth up to 1 billion euros ($1 billion), a senior executive said on Thursday.

Limak, which already has interests in Mozambique and Ivory Coast, has signed a confidentiality agreement regarding the purchase from an international cement company, the executive said.

But the outcome of the talks would not be known for several months.

Limak Cement Group General Coordinator, Gultekin Aksuyek did not also say who it was looking to buy the assets from but said it had operations in more than one African country.

“A global cement firm is considering selling its facilities in three African countries… We are seriously interested and have signed a confidentiality agreement.

“I think we will know in five to six months,” Aksuyek said.

He added that Turkish companies had ground to make up in the continent which had good growth opportunities.

“As Turkish companies, we were very late in penetrating the African market,” Aksuyek said, adding that an unnamed bank was positive about financing the acquisition.

Other overseas expansion plans were also in the works.

“We are also studying a possible acquisition in one of Latin America countries. We may make an acquisition there in the next five years,” he said.

Limak has 10 cement factories in Turkey and is building cement grinding and packaging facilities in Mozambique and Ivory Coast.

The facilities are expected to come online in 2016 and 2017, as part of broader expansion plans by the group.

“As the cement arm of the holding, we decided to lead the group into Africa.

“Our energy arm is working on their plans for Mozambique and construction arm is considering Ivory Coast,” Aksuyek said.

He noted that he expected Limak Cement’s sales volume to grow around 4 per cent in 2016 to 8.8 million tonnes.

Among Africa’s major cement makers, Dangote Cement has an annual production capacity of 45 million tonnes.

Other major players in Africa include Lafargeholcim, Germany’s Heidelberg and South African-based PPC.