AfriSam, PPC deal ‘doesn’t make sense’
The possible PPC and AfriSam merger has been lambasted as not making sense given PPC’s Africa growth strategy.
“The transaction itself does not make a strategic sense as PPC Ltd would be more interested in large exposure to the rest of the continent than the South African market,” Charl Kocks, principal at Ratings Afrika told CNBC Africa.
“The South African cement market is not booming as we have four large companies and a possible entrant soon and maybe the sixth through the Chinese, so why would one want to be large in the market where you are not growing as you want to,” quizzed Kocks.
Kocks also questioned Public Iinvestment Corporation‘s (PIC) involvement in the deal saying answers were needed.
By: Trust Matsilele