Nigeria’s Dangote Triggers Panic in Germany

According to a Reuters report, Dangote cement triggered panic buying in Germany after it showed interest in taking over a cement company.dangote cement.jpgHeidelberg Cement rushed to buy control of Italcementi after an African rival also showed interest in the Italian cement maker, but a counter bid is highly unlikely, three sources close to the matter told Reuters. One of the sources said Nigeria’s Dangote Cement had been circling Italcementi but did not make a formal offer. Carl Franklin, head of investor relations at Dangote, said the company did not comment on specific rumours “but as a large company we examine all options for growth”

Germany’s Heidelberg Cement on Tuesday agreed to purchase 45 percent of Italcementi and bid for the rest in a deal that values its smaller Italian rival at 6.7 billion euros ($7.4 billion). “Everything was done to close (the deal) quickly because the sector is churning,” the source said. “Dangote Cement also saw a potential for synergies and was looking to strike a deal.”

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