Nigerian cement maker Dangote Cement has withdrawn its nonbinding expression of interest for the acquisition of South African cement producer PPC.
In September, Dangote proposed a combination of the two companies.
“Shareholders are advised that, on October 5, the board received, from Dangote, a formal withdrawal of its interest in respect of the proposed combination,” PPC said in a statement on Friday.
However, the two earlier bids were ongoing, the company said, referring to AfriSam’s offer, which was backed by Fairfax Africa Investments and an undisclosed bid for a potential Pan-African combination with PPC.
AfriSam submitted a revised merger proposal to PPC in September, while a regional unit of Fairfax Africa Investments has offered to buy R2-billion of PPC shares, subject to PPC shareholders agreeing to the merger with AfriSam.
Another indicative credible proposal for a potential Pan-African combination with PPC had also emerged, with engagements ongoing.
PPC’s shares on the Johannesburg bourse fell just over 3% by 15:00 on Friday.