NIGERIA: LAFARGE CEMENT TO MERG WITH UNICEM, ATLAS CEMENT - CALIPHATE MEDIA

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Friday, 10 November 2017

NIGERIA: LAFARGE CEMENT TO MERG WITH UNICEM, ATLAS CEMENT

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By Victor Odom

The Chairman, Lafarge Africa, Mr. Mobolaji  Balogun, said there was a need for the merger, pointing out that it would help to streamline the operations of Unicem and Atlas as well as to reduce the operating costs by consolidating the cement manufacturing and marketing businesses for better ;efficiency and management.
According to Balogun, the merger is expected to result in improved returns to shareholders’ fund as well as increased benefit to other stakeholders, including employees and customers of Lafarge Africa, Unicem and Atlas.

Shareholders, in their response, commended the company for its strategy and foresight, stressing that they were expectant that the move would boost the returns on their investment and make the company attractive for increased investments.
They called on the management and board of the company to make informed decisions on the move while ensuring that all relevant requirements were met.
Responding to shareholders, Balogun said, “This merger is laudable and will eliminate cost inefficiencies arising from duplication of resources such human resources, financial reporting, operating and administrative expenses, among others. These cost elements would be significantly reduced post-merger”.
Lafarge Africa is the sole shareholders of Unicem and Atlas with Lafarge Africa holding an indirect 100 per cent equity shareholding in each of Unicem and Atlas. Atlas was commissioned for operation in 2001 in Rivers State within the Federal Ocean Terminal, Onne and the plant was operated on a floating vessel which had a nominal capacity to pack 500,000 metric tonnes of cement per annum.
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Unicem is headquartered in Calabar, Cross River State, with all its cement manufacturing operations consolidated at the Mfamosing plant. The Mfamosing plant is a modern production facility with an annual production capacity of five million tonnes and was inaugurated in 2009.
The merger scheme with unicem and atlas has received approval from both board of directors and shareholders.
 



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