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pratlou
Senior Member
JSE-listed industrial metals and mining group Afrimat has decried the slow pace of final regulatory approval for its acquisition of Lafarge, describing the process as frustrating.
The merger, touted by analysts as the “deal of the century”, will give Afrimat access to some of the best assets in the SA construction industry, amid a lift in demand, at a discounted price. This will allow the company valued at about R10bn on the JSE to enhance operational efficiency and meet customer demand.
Delivering a pre-close update on Friday, CEO Andries van Heerden said the regulatory hurdles associated with acquiring Lafarge were in their last phase, yet stalling.
Afrimat needs approval from the Competition Tribunal, after the Competition Commission conditionally gave the merger the go ahead.
Despite the commission’s recommendation, the tribunal decided to hold a preliminary public hearing in December. Three interested parties eventually joined the matter.
On Friday, Van Heerden said the delays were a stumbling block for Afrimat’s strategy but also put the livelihoods of Lafarge employees at risk.
“We’ve reached a very, very frustrating phase of the transaction,” he said. “There are a few opportunists that are trying to get some benefits for themselves in the process and it is highly frustrating and obviously a risk for the Lafarge employees because the business is not doing well at the moment and it desperately needs strong management to turn it around.”
He said the resilience of the group’s diversification strategy away from exports to more domestic business was boding well for Afrimat given the rail and port challenges.
www.businesslive.co.za
The merger, touted by analysts as the “deal of the century”, will give Afrimat access to some of the best assets in the SA construction industry, amid a lift in demand, at a discounted price. This will allow the company valued at about R10bn on the JSE to enhance operational efficiency and meet customer demand.
Delivering a pre-close update on Friday, CEO Andries van Heerden said the regulatory hurdles associated with acquiring Lafarge were in their last phase, yet stalling.
Afrimat needs approval from the Competition Tribunal, after the Competition Commission conditionally gave the merger the go ahead.
Despite the commission’s recommendation, the tribunal decided to hold a preliminary public hearing in December. Three interested parties eventually joined the matter.
On Friday, Van Heerden said the delays were a stumbling block for Afrimat’s strategy but also put the livelihoods of Lafarge employees at risk.
“We’ve reached a very, very frustrating phase of the transaction,” he said. “There are a few opportunists that are trying to get some benefits for themselves in the process and it is highly frustrating and obviously a risk for the Lafarge employees because the business is not doing well at the moment and it desperately needs strong management to turn it around.”
He said the resilience of the group’s diversification strategy away from exports to more domestic business was boding well for Afrimat given the rail and port challenges.
Afrimat frustrated by slow Lafarge transaction
The firm says 800 jobs are on the line and Lafarge desperately needs strong management to turn it around
www.businesslive.co.za