BUSINESS MAVERICK: Could it be third time lucky for PPC in possible tie-up with AfriSam?

It might be a case of third time’s a charm for SA’s largest cement-maker PPC in its possible merger with AfriSam.

The last collapse in merger talks was in December 2017. At the time, AfriSam, chaired by prominent businessman Phuthuma Nhleko, faced an R8-billion debt load and its major shareholder, the Public Investment Corporation , was reluctant to inject more money into the company. Arguably, it would be opportunistic for PPC to launch a bid for AfriSam. After all, some dealmakers argue that a distressed business environment is good for acquisition opportunities.

After the cement industry approached the International Trade Administration Commission to investigate allegations of cement dumping in SA by Pakistan, the commission found in 2014 that there was evidence of bagged cement dumping. From May 2015, SA introduced import tariffs ranging between 14.29% and 77.15% on cement from Pakistan. The tariffs were effective as cement imports dropped by 497,269 tons in 2016, said TCI chief executive Bryan Perrie.

Some local producers cannot compete on price, resulting in them mothballing productivity on their cement plants. PPC alone has shut down one production unit at its Dwaalboom cement plant in Limpopo that directly employs more than 230 people. PPC’s Lekula said the company is selling cement today at 2008 prices to protect its demand. And because of this, producers are making profit margins of between 11% and 15% compared with the 28% they made before the growth of imports, he said.

Philippines Philippines Latest News, Philippines Philippines Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: Google Deepens Push for Financial Data With Citigroup Tie-UpGoogle is taking its deepest dive yet into the financial lives of its users with plans to roll out a checking-account service.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Tencent Slides 2% After Earnings Miss Lowest Analyst’s EstimateTencent Holdings Ltd. slid more than 2% after reporting earnings below the lowest analyst’s estimate, underscoring the Chinese internet giant’s challenges in reviving growth during an economic slowdown.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Takeaway CEO Doesn’t Want to Overpay With Just Eat BidTakeaway.com NV Chief Executive Officer Jitse Groen said it doesn’t make sense to overpay in its bid to gain control of U.K. rival Just Eat Plc.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Companies: A tangled web woven: The PIC and Independent MediaThe findings of the Mpati Commission of Inquiry are yet to be publicly released, yet despite all good intentions, the new management of the PIC seems slow to act in important cases, such as its investment in Independent Media.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: OP-ED: The fall of the Berlin Wall and social democracyIt was already clear 30 years ago that the fall of the Berlin Wall would change everything. But precisely what that change will mean for world politics in the 21st century still remains to be seen.
Source: dailymaverick - 🏆 3. / 84 Read more »

BUSINESS MAVERICK: Amcu again says that platinum wage deals will be signedThe Association of Mineworkers and Construction Union has once again said that wage deals will be signed with South Africa’s big platinum producers, this time on Friday, 15 November 2019. The union said on Tuesday that the signing ceremony would take place on Wednesday and then pulled the plug amid apparent last-minute wrangling. Hopefully, there is no false alarm this time.
Source: dailymaverick - 🏆 3. / 84 Read more »