Lafarge Africa Plc has received the crucial shareholders’ approval to further consolidate its operations by absorbing two of its wholly-owned subsidiaries- Atlas Cement and United Cement Company.
The approval was given Monday, November 6, 2017 at an extraordinary general meeting held in Lagos.
Chief Executive Officer, Lafarge Africa Plc, Michel Pucherchos, said the merger was part of the asset consolidation the group began in June 2014.
According to him, the consolidation will solidify the group’s market position in Nigeria particularly its presence in the South-South and South-East regions.
He noted that Lafarge Africa has seen its installed cement production capacity growing from 4.5 million to over 10 million metric tons per year with a diversified product range.
Total industry installed Cement production capacity in Nigeria has grown from 4.3 in 2004 to 37 million metric tons in 2014, due to government policies which banned importation of bulk cement in favour of local production in 2012.
However, cement consumption in the largest cement economy in Africa still lags behind its peers.. Investors in the sector remain very optimistic based on favourable demographics, a rising middle class, rapid urbanisation and a significant housing and infrastructural deficit which should all combine to support increased demand.
The board of Lafarge Africa assured that there will be no significant impact on the employees of UniCem and Atlas and on their terms and conditions of employment.
Both companies will transfer their assets, liabilities and undertakings including real and intellectual property rights to Lafarge Africa.
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