What you need to know:
- Holcim said it signed an agreement to sell its Ugandan subsidiary, Hima Cement, to the Uganda-based conglomerate Sarrai Group in a deal valued at $120 million.
- It will sell its 65-percent stake in Mbeya Cement Company – which is owned by Lafarge Tanzania - to Amsons Group for an undisclosed sum, but industry insiders estimate that the value of the company is around $175 million.
Dar es Salaam. Shortly after Swiss cement giant Holcim said it was selling its businesses in Tanzania and Uganda to local companies to focus on its core markets, the Tanzanian unit says the decision would result in a prosperous and profitable future local entity.
Last week, Holcim said it signed an agreement to sell its Ugandan subsidiary, Hima Cement, to the Uganda-based conglomerate Sarrai Group in a deal valued at $120 million.
It will sell its 65-percent stake in Mbeya Cement Company – which is owned by Lafarge Tanzania - to Amsons Group for an undisclosed sum, but industry insiders estimate that the value of the company is around $175 million.
Holcim speaks out
“These divestments advance our strategy to consolidate our leadership in core markets,” Mr Martin Kriegner, Holcim’s regional head for Asia, the Middle East and Africa, said in a statement.
The deals must be approved by regulators.
In Tanzania, Holcim Group said it has entered into a sale agreement with Amsons Group, which, it said, would ensure a prosperous and profitable future for Mbeya Cement.
Lafarge Tanzania CEO Medhat Ismail said in a statement that Holcim’s 2025 Strategy on accelerating green growth focuses on consolidating leadership in core markets.
“It aims to become the global leader in innovative and sustainable building solutions….In this context, Holcim is constantly evaluating opportunities to align its portfolio with this vision and open new growth opportunities for the company,” he said.
This, he said, was why Holcim has taken the decision to divest from Tanzania and entered into a sale agreement with Amsons Group, for the sale of Pan African Cement Limited (a Holcim subsidiary) which has a 65 percent stake in Mbeya Cement.
“We are pleased to have found a strategic and trusted partner for the business in Amsons Group that is well-positioned to continue investing in its long-term growth. Holcim sees it as a positive opportunity for all parties and believes that this deal will ensure a prosperous and profitable future for Mbeya Cement,” read part of the statement.
The Amsons Group is a family-run business in the Oil and gas and Consumer Packaged Goods sectors in Tanzania, Mozambique, and Zambia. The Group also owns and operates a cement grinding station and concrete plant in Tanzania. This acquisition is part of Amsons Group’s ongoing growth strategy in the construction industry.
The transaction is currently going through the approval process by the relevant authorities.
Additionally, this transaction is at a holding level and all operational aspects remain the same until closing (expected Q1-2024).
The Company’s operations will be maintained and continue normally, Mbeya Cement, “We deeply value our employees who have built the business over the years.”
Holcim appreciates the willingness expressed by the potential buyer to build upon local talent and to offer people a culture where all can thrive. It is important that we all remain focused and continue to deliver excellent results in H&S, industrial excellence, cash generation, and profitability.