The proposed merger between the publicly listed Cement Company of Northern Nigeria (CCNN:NL) and BUA’s Obu Cement Company has gotten the approval of 99.93 of CCNN’s shareholders.
The overwhelming approval, which was disclosed in a press statement released by the group and sent the Herald, was obtained sequel to two separate court-ordered and Extra-Ordinary General Meetings in Abuja, Nigeria.
The approval would see CCNN merge with the BUA Obu Cement Company and solidify BUA Cement’s drive to be the country’s second largest producer of cement by volume by 2020 – whilst also being the industry leader in efficiency and capacity utilization. It should be noted that CCNN shareholders voted 99.93% in favour of the deal at their court-ordered meeting.
Upon regulatory approval and completion of the merger, the new entity, which currently has a combined installed capacity of eight million metric tons per annum will increase to 11million mtpa by H2 2020 and is set to remain the dominant cement player in the key regional markets in Northern Nigeria, South-South and South-East Nigeria with almost unfettered access to key export markets in West Africa due to the prime location of its plants.
In his comments, Chairman, CCNN and Founder, BUA Group, Abdul Samad Rabiu, expressed his profound gratitude to the shareholders for their support throughout the process.
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He said:
‘We thank shareholders of both companies who voted overwhelmingly to approve this merger to mark 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 a 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 the 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.”