HeidelbergCement, a German multinational building materials company has signed an agreement to acquire 68 per cent of the shares in the Tanzanian cement producer Tanga Cement.
In a statement, the company says through the transaction, it will secure an important limestone quarry with measured resources for at least 30 years on top of its already existing reserves.
The quarry and the associated cement plant with a capacity of 1.3 million tonnes of Tanga Cement are located in the Northern part of Tanzania.
This will strengthen its local business and create significant synergies with its existing assets in Tanzania through its subsidiary Tanzania Portland Cement.
The closing of the transaction is subject to the fulfilment of regulatory conditions.
The closing of the transaction is expected in the second quarter of 2022.
Upon closing, HeidelbergCement will make a public tender offer to acquire the remaining outstanding shares in Tanga Cement, following Tanzanian law and in alignment with the respective local authorities.
Both companies, Tanzania Portland Cement und Tanga Cement, are publicly listed.
