Afrimat CEO Criticizes Delay in Lafarge Merger Approval
Deal News | Jun 18, 2025 | EIN
Afrimat's acquisition of Lafarge South Africa, a transaction valued at US$6 million, was approved by the Competition Tribunal in April 2024, a year after the firm first announced the deal. Afrimat CEO, Andries van Heerden, criticized the delay, expressing concerns about the deterioration in Lafarge's cement operations and diminished cash at acquisition. Due to these setbacks, Afrimat spent approximately R185 million in the current financial year to rehabilitate the cement kilns, impacting the financial results for the year. The acquisition included a wide array of operations such as quarries and cement plants, but as per the tribunal's approval conditions, Afrimat is also required to divest some assets. Despite these challenges, van Heerden emphasized the operational improvements and sustainability efforts achieved through Afrimat's industry expertise.
Sectors
- Construction Materials
- Mergers and Acquisitions
Geography
- South Africa – The acquisition involves Lafarge South Africa and its operations within the country.
Industry
- Construction Materials – Afrimat's acquisition of Lafarge involves operations in quarries and cement plants, which are core segments of the construction materials industry.
- Mergers and Acquisitions – The article discusses Afrimat's acquisition of Lafarge South Africa, a transaction subject to regulatory approval delays.
Financials
- US$6 million – The purchase price for Afrimat's acquisition of Lafarge South Africa.
- R185 million – The amount spent on rehabilitating cement kilns during the current financial year, impacting Afrimat's financial performance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Afrimat | Bidding Company | Company | Afrimat is a South African company engaged in the construction materials industry, acquiring Lafarge South Africa. |
| Lafarge South Africa | Target Company | Company | Lafarge South Africa, being acquired by Afrimat, operates in the cement and construction materials sector. |
| Competition Tribunal | Regulatory Authority | Government | The regulatory body that approved Afrimat's acquisition of Lafarge South Africa after a delay. |
| Competition Commission | Regulatory Authority | Government | Provided recommendations for the merger approval to the Competition Tribunal. |
| Andries van Heerden | CEO of Afrimat | Person | CEO of Afrimat, who criticized the delay in merger approval. |