Lafarge SA to be acquired by Afrimat

The building materials group aims to meet customer demand and enhance operational efficiency with the acquisition.

1. Afrimat, a South African open-pit mining company, is set to acquire Lafarge South Africa, a local unit of the French multinational building materials company, LafargeHolcim.
2. The acquisition will cost Afrimat R4.05bn ($280m). Afrimat will fund the acquisition through a combination of cash and a fully underwritten rights issue.
3. The Lafarge South Africa business comprises of aggregates, readymix, and fly ash operations, which will complement Afrimat’s existing business in these areas.
4. The deal is subject to regulatory approvals and is expected to be completed by the end of the year.
5. The acquisition is part of Afrimat’s strategy to expand its footprint in the construction materials market. Afrimat expects the acquisition to increase its earnings and diversify its revenue streams.