Kenya-based National Cement Co. Ltd. (NCC), part of steel and cement manufacturer Devki Group of Cos., is purchasing peer Athi River Mining (ARM) Cement.
Under the pact, National Cement Co. will buy all cement and non-cement assets and business of Athi River Mining in Kenya for $50 million, which is expected to position National Cement Co. as the leading cement manufacturer in the region.
National Cement said that the acquisition of ARM’s plants will initially increase its 1 million tonnes annual capacity by 400,000 tonnes.
The transaction is subject to regulatory approvals. Furthermore, National Cement Co. is planning to upgrade the production plants it is acquiring with $36 million investment.