Merger negotiations between cement producers AfriSam and PPC have been terminated after AfriSam on Wednesday retracted the heads of terms (HoT) that were entered into in February.
JSE-listed PPC on Friday said AfriSam planned to rather submit an undisclosed new proposal regarding a possible combination of the two companies.
PPC’s share price on the Johannesburg bourse fell nearly 6% by Friday afternoon following the announcement.
PPC and AfriSam re-entered merger negotiations in February, two years after abandoning their first tie-up attempt.
The firms have been considering the merger to potentially unlock the capabilities of a major African cement producer that would be able to compete more comfortably in the global cement market.
The HoT had been cemented to assess the merits of the deal.