Lafarge-Holcim merger: impact on Africa?

02 May 2014

Gboka, an analyst at Exotix LLP (London-Based broker specialised in Frontier markets), comments on probable impacts of the merger on sub-Saharan African cement markets.

Holcim released its first quarter results for 2014 this week and benefits of a merger seemed clear: both sales and profit were down. Net sales fell by 5.4% to Euro3.35bn and net income fell by 57.5% to Euro65.6m. However, Chief Financial Officer Thomas Aebischer was upbeat on meeting the regulatory requirements of any merger and the prospect of divestment opportunities.

“Looking at (1) the location and size of the assets that both groups operate across the region but also (2) the expansion projects recently announced, we do not anticipate any upheaval in the competitive landscape, at least in the medium term,” Gboka said.

“We identify Nigeria and Morocco as the main countries where the two companies are likely to reorganise their operations post-deal.”
By Andy Gboka
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