Company to acquire 68 percent shareholding in Tanga Cement based in north of the country
FURTHER strengthening their local business and creating significant synergies with their existing assets in Tanzania, HeidelbergCement have signed an agreement to acquire 68% of the shares in the Tanzanian cement producers Tanga Cement.
Through their subsidiary Tanzania Portland Cement, the largest cement-producing company in the country, HeidelbergCement already hold a good market position in Dar es Salaam, in the eastern part of Tanzania.
As part of the transaction, HeidelbergCement will secure an important limestone quarry with measured resources for at least 30 years in addition to their existing reserves. The quarry and the associated Tanga cement plant, which has a capacity of 1.3 million tonnes per annum, are in the northern part of Tanzania.
The transaction is expected to complete in the second quarter of 2022, subject to customary conditions. 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 Tanzania Portland Cement and Tanga Cement are publicly listed.