Oman's Raysut acquires rival Sohar Cement for $60m
DUBAI, June 1, 2019
Raysut Cement Company, one of Oman’s largest cement manufacturers, said it has acquired its rival Sohar Cement Factory for $60 million as part of its ambitious plan to boost its capacity in the rapidly growing markets, mainly Africa.
This acquisition brings up Raysut Cement's cement capacity to 6.4 million tonnnes per annum, said the Muscat Securities Market-listed company in a statement.
Raysut, which had purchased all of Sohar Cement’s shares effective May 19, will immediately begin integration of the company located at the Sohar Industrial Estate in Oman,
The Omani cement group had earlier outlined its plans to expand its reach through acquisitions in Africa.
As a next expansion phase, Raysut will be looking at India, where it is likely to enter through acquisitions, it stated.
"The acquisition of Sohar Cement forms part of Raysut’s ambitious plan to expand its capacity in 2019 to not only supply to its domestic higher demand Northern markets but also to service the rapidly growing markets, particularly in Africa and to focus on diversification and grow outside the Gulf region," remarked CEO Joey Ghose.
The Sohar acquisition also includes taking over the 20 per cent stake of Fujairah Cement in the company, stated the top official.
“We are looking at an aggressive expansion strategy from 2019 with a view to eventually expand our production to 20 million tonnes per annum,” noted Ghose.
The company had posted a growth of 26.6 per cent in revenues last year with turnover recorded at RO91 million ($236 million), a significant growth from RO71.8 million ($186 million) in 2017.-TradeArabia News Service
