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CCNN, Obu Cement sign merger agreement in a bid to challenge Dangote Cement for market leadership



I had to withdrew $10m on the spot to convince myself I had so much money —Dangote

In a notification sent to the Nigerian Stock Exchange (NSE) and the investing public on Wednesday, the board of Cement Company of Northern Nigeria (CCNN) said it is exploring a merger agreement with Obu Cement Company Plc.

The proposed merger was the result of the joint aspiration of both cement companies to expand their frontiers in the Nigerian cement industry.

CCNN and Obu Cement had received approval for the proposed merger from the Federal Competition and Consumer Protection Commission (FCCPC) and the Securities and Exchange Commission (SEC), while the NSE has given it a “no objection” approval.

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The companies have also obtained a court order to convene separate Court-Ordered Meetings to seek approval of shareholders for the proposed merger.

Upon completion of the proposed merger, the entity will be known as Obu Cement, while CCNN will be delisted and replaced with the new entity.

Consequently, Obu Cement will absorb all assets, liabilities, employees, real property and intellectual property rights of CCNN.

Details on share exchange ratio – though not yet released to the public – have been sent to shareholders of CCNN and Obu Cement.

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