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Friday, September 30, 2022
HomeBusinessFossil Mines Acquires Lafarge Zimbabwe

Fossil Mines Acquires Lafarge Zimbabwe

Fossil Mines, a local resource company has effectively acquired controlling stake in Lafarge Cement Zimbabwe Limited which was previously held by Associated International Cement Limited, a member of the Swiss-headquartered, Holcim group in a latest sell-off of the cement giant’s assets which is part of its global consolidation strategy, 263Chat Business has learnt.

Fossil Mines is a local resource company reportedly owned by Obey Chimuka.

Last year, Holcim sold part of its Ghana business and disposed of its Brazil unit for US$1 billion. Lafarge Zambia was also sold off to Chinese cement giant, Huaxin Cement, who subsequently lost the takeover bid in the Zimbabwean unit to Fossil Mines.

In an update to investors, Lafarge Zimbabwe confirmed the development.

“Further to the cautionary announcement dated 31 May 2022, shareholders and members of the investing public are advised that Associated International Cement Limited, a member of the Holcim group, has entered into a binding agreement for the sale of its 76.45% stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Private) Limited,”

“The transaction, if successfully concluded, may have a material effect on the Company’s securities. Accordingly, shareholders and members of the investing public are advised to exercise caution when dealing in the Company’s securities until a full announcement is made.”

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The company performance has not been positive in recent times despite cement demand in the market.

A damaged roof collapse that rattled Lafarge Cement Zimbabwe in October last year affected production and eventually its revenue took a knock as the company resorted to selling clinker, an intermediary product, for sustenance.

Subsequently, the company posted a ZW$ 470.4 million loss for the year in historical terms.

In its first quarter to March 2022 trading update, cement volume remained subdued dropping by 55 percent against the same period last year due to the startup mode as the cement mills were restarted in February following the collapse prior year.

In addition, one of the existing cement ball mills was decommissioned to make way for the installation of the new Vertical Roller Mill (VRM) that is expected to double the company’s capacity after commissioning in Q2. The company’s Dry Mortars volumes fell by 23 percent compared to the same period last year.

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