South Africa’s biggest lime and cement maker, PPC, on Wednesday said AfriSam, its arch competitor, had proposed that the two companies merge their operations to form an even bigger cement company.

AfriSam’s proposal was conditional and non-binding, prompting the shares of PPC to surge almost 4 percent on the JSE’s afternoon trade.
This was a sign that the market liked the idea of the merger as it would give PPC a larger scope in South Africa’s cement sector, traders told Ventures Africa.

PPC said its board of directors was currently considering the proposal and would make a further announcement in due course once it has concluded its consideration of the proposal.

AfriSam is a supplier of superior quality construction materials and technical solutions. Founded in 1934, it has since established itself as a company committed to making growth on the African continent possible.

PPC recently said it would begin commissioning its 600 000 ton-a-year plant in Rwanda by the end of this year while plant construction in the DRC, Zimbabwe and Ethiopia continued.

“A positive outcome of a detailed feasibility study into establishing cement operations in Algeria would result in the construction of yet another cement factory in a different African country,” Ketso Gordhan, the former CEO of PPC, said at the time. He since resigned from the position following a bloody boardroom brawl.