Dangote considers Kenya entry – looking to acquire ARM Cement

Dangote Cement Plc, Africa’s biggest producer of the building material, expressed an interest in acquiring Kenyan rival ARM Cement Ltd., according to 3 people familiar with the matter.

ARM has been exploring a sale since at least October 2017. The company, was placed in administration in August after failing to find a strategic investor to help it manage debts of Ksh14.4 billion (US$141 million).

Aliko Dangote – chairman and founder of the Dangote Group – said in an interview with Bloomberg on Tuesday that the company is in talks about a potential acquisition of a company with operations in Kenya and Tanzania. While he did not identify the company, ARM has assets in both countries, as does Switzerland-based LafargeHolcim Ltd.

Dangote Cement first signaled its interest in ARM last year and renewed its attention after management of the company was handed over to PricewaterhouseCoopers LLP’s Kenyan unit, said 2 of the people.

Other parties that considered bids included Germany’s HeidelbergCement Ag and LafargeHolcim, with the former still keen on the business, the people said.

Dangote Cement spokesman Carl Franklin declined to comment. PWC administrator George Weru said he couldn’t immediately comment when contacted by phone. HeidelbergCement spokesman Andreas Schaller wasn’t immediately available for comment.

Source: Bloomberg News