The building materials group aims to meet customer demand and enhance operational efficiency with the acquisition.
- 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.
- The acquisition will cost Afrimat R4.05bn ($280m). Afrimat will fund the acquisition through a combination of cash and a fully underwritten rights issue.
- The Lafarge South Africa business comprises of aggregates, readymix, and fly ash operations, which will complement Afrimat’s existing business in these areas.
- The deal is subject to regulatory approvals and is expected to be completed by the end of the year.
- 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.