03 December 2018 : On the 29th of November, the shareholders of Cement Company of Northern Nigeria (CCNN) and BUA Group’s Kalambaina Cement Company (KCC), voted to approve a merger of the two companies, with CCNN emerging as the resultant entity. This combination is the largest public corporate merger transaction of 2018. Upon approval, CCNN is poised to take over the assets and liabilities of KCC, including a 1.5 million MT plant which is configured to run on multiple fuel sources and boasts a 32MW captive power plant. This effectively takes CCNN’s production capacity up to 2 million MT and mitigates the company’s dependence on the more expensive LPFO as a fuel source. Whilst CCNN remains the third largest listed producer, the scheme cements CCNN’s place as an emerging titan in the sector and positions it to take advantage of long-term demand in Nigeria and surrounding countries. The scheme is a non-cash transaction involving a share exchange, where 19,811,732 CCNN shares will be issued for every 100,000 KCC shares. 

Reporting for EasyKobo on Monday , 03 December 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited