Post Views: 176 Shareholders of Cement Company of Northern Nigeria (CCNN) and BUA Group-owned Obu Cement Company, at separate court-ordered and Extra-...
Shareholders of Cement Company of Northern Nigeria (CCNN) and BUA Group-owned Obu Cement Company, at separate court-ordered and Extra-Ordinary General meetings, on Wednesday in Abuja, gave their blessings for the merger of both firms, pending final regulatory approval.
The merger will result in a business combination of both entities, thereby making BUA Cement, their parent company, Nigeria’s second-largest producer of cement by volume by 2020.
At the meeting of CCNN, shareholders voted 99.93% in favour of the merger, which is also expected to enhance the efficiency and capacity utilization of the emergent entity which would have a combined installed capacity of 11m mtpa by H2 2020, from 8m MTPA.
Management of CCNN says the emergent company is set to remain the dominant cement player in the key regional markets in Northern Nigeria, South-South and South-East Nigeria. This is in addition to availing it almost unfettered access to key export markets in West Africa, due to the prime location of its plants.
Commenting on the merger, Chairman of CCNN and founder, BUA Group, Abdul Samad Rabiu, expressed his profound gratitude to the shareholders of both companies for their overwhelming support throughout the process.
The merger, he continued, marks “the completion of yet another phase of our local cement expansion programme.
“This deal will create one of the largest companies in Nigeria and the Nigerian stock exchange. It will also ensure more efficient operation, improved financial performance and create better value for all stakeholders.
“We are certain that the new entity can continue to compete effectively in the cement industry in Nigeria with its more advanced plants and geographical advantages, whilst maintaining its market dominance in its key regions.
“The new, enlarged cement company will be a stronger platform to capture significant synergies and create value for the benefit of shareholders in the form of stronger competitive position, economies of scale, enhanced operations and administrative efficiencies which are expected to accrue.
“Our commitment towards the Nigerian economy remains strong and this new entity further deepens the capital market and is a pointer to the continued resurgence of the economy. We remain committed to delivering exceptional value to stakeholders at all times. Innovation, efficiency and best-in-class technology will continue to be the key drivers of our cement business,” Rabiu stressed.