Afrimat Limited, a prominent player in the South African business landscape, is on the brink of finalizing its acquisition of Lafarge South Africa Holdings Proprietary Limited (“LSA”). The latest update provides a comprehensive overview of the current status and the key milestones achieved in this strategic move.
Background: Afrimat’s Ambitious Endeavor
In a significant development on 20 June 2023, Afrimat revealed its ambitious plan to acquire 100% of the issued share capital of LSA from Caricement B.V., a subsidiary of the Holcim Group. The share purchase agreement marked a pivotal moment in Afrimat’s growth strategy.
Conditions Precedent – A Steady Progress
Afrimat reports that several conditions precedent have been successfully fulfilled, indicating progress towards the completion of the acquisition. The table below outlines the milestones achieved:
| Condition Precedent | Fulfillment Date |
|---|---|
| Ministerial Approval (section 11 of MPRDA) | 27 October 2023 |
| SARB Exchange Control Approval | 14 July 2023 |
| Competition Authorities Approval (Botswana) | 31 August 2023 |
| Competition Authorities Approval (Eswatini) | 22 August 2023 |
Table 1: Milestones Achieved
Awaiting South African Competition Tribunal Approval
The latest update reveals that the only outstanding condition precedent is the approval of the Competition Authorities in South Africa. The Competition Commission referred the transaction to the Competition Tribunal on 6 November 2023 with a recommendation for conditional approval. However, as of the latest update, the merger parties are yet to receive a final decision from the Competition Tribunal.
Path to Unconditional Implementation
The Acquisition will become unconditional and be set in motion once the Competition Tribunal approval is secured. The anticipation is palpable as Afrimat and Caricement B.V. await the final regulatory nod to solidify this strategic business move.
Conclusion: A Transformative Step for Afrimat
Afrimat’s pursuit of acquiring Lafarge South Africa represents a transformative step for the company, poised to reshape its position in the market. The strategic significance of this acquisition is underlined by the meticulous fulfillment of conditions precedent and regulatory approvals, showcasing Afrimat’s commitment to navigating the complex landscape of mergers and acquisitions.
