The proposed acquisition of AfriSam subsidiary, Tanga Cement, by Heidelberg Material's Scancem International DA has hit a snag as a tribunal judge ruled a decision to accept the deal to be against the law.
Judge Salma Maghimbi of The Fair Competition Tribunal (FCT) in Tanzania, has ruled the decision by the Federal Competition Commission (FCC) to accept the merger was wrong, stating that the FCC does not have jurisdiction over the matter. Chalinze Cement of Tanzania has also opposed the merger.
Tanga Cement Plc Board Chairman, Lawrence Masha, stated “HeidelbergCement and Afrisam are still considering ways of processing, but the FCT judgement has created a very difficult position for the buyout to be effected.”
Finance Minister, Dr Mwigulu, previously said the acquisition would make it possible for Tanga Cement to be more productive, maintain the supply of cement and assure employment for the current employees of the company.
AfriSam owns Tanga Cement and wants to sell its 68 per cent share to Scancem International DA (Heidelberg Materials group) in a deal worth more than TZS137bn (US$55m).
