China eyes major South African industry

West China Cement is seeking to acquire South Africa’s AfriSam South Africa Proprietary, marking the latest push by cement companies from the Asian nation to expand on the continent.

The proposed acquisition was detailed in a statement on the Competition and Consumer Authority’s website. The filing, which sought comment from stakeholders, didn’t disclose financial details.

Chinese cement giants, facing a slowdown in domestic construction, have been on an acquisition spree in Africa. Huaxin Cement Co. of China last year paid $1 billion to purchase a controlling stake in Lafarge Africa Plc from Holcim AG. West China Cement is building facilities in Ethiopia and Uganda.

Africa’s biggest asset manager, the Public Investment Corporation, as well as South African lenders Nedbank, Standard Bank, FirstRand and Absa, hold significant stakes in AfriSam after a number of business restructuring moves, and have been seeking ways to exit some of their holdings over the years.

In South Africa, President Cyril Ramaphosa has outlined plans to turn the nation into a vast construction site to modernise infrastructure and raise economic growth, a goal that is likely to boost cement sales.