HeidelbergCement has signed an agreement to acquire 68 per cent of the shares in the Tanzanian cement producer Tanga Cement. The step aims to strengthen its local business and create significant synergies with its existing assets in Tanzania, says the company in a statement.
Through its subsidiary Tanzania Portland Cement, the largest cement-producing company in the country, HeidelbergCement already has a good market position in Dar es Salaam in eastern Tanzania. As part of this transaction, HeidelbergCement secures an important limestone quarry with measured resources for at least 30 years on top of its already existing reserves. Tanga Cement’s quarry and the associated cement plant with a capacity of 1.3Mta are located in the north of the country.
The closing of the transaction is subject to the fulfillment of customary conditions precedents (especially the clearance by several local authorities), which have to be fulfilled or waived within an agreed timeframe. As of 26 October 2021, closing of the transaction is expected in the second quarter of 2022. Upon closing, HeidelbergCement will make a public tender offer to acquire the remaining outstanding shares in Tanga Cement, following Tanzanian law and in alignment with the respective local authorities.
