Raysut Cement, Oman's largest cement producer by market value, said it acquired a 50 percent stake in Oman Portuguese Cement Products Company (OPCP) to expand into new areas of the cement businesses.

Raysut said in a statement it would take over 40 percent in OPCP owned by Oman Investment Corporation and 10 percent of Silva Corporation's 60 percent holding.

Raysut's chief executive officer Mohammed Ahmed Al Dheeb said the deal was valued at 1.92 million rial ($4.99 million).

The acquisition will help Raysut move into production of ready mix and pre-cast concrete, blocks, and interlock paving.   

"With this company, we will look at expanding into other businesses related to the cement industry. We will look to expand our product range and reach the end customer." Dheeb said.

Omani cement companies have faced stiff competition from cement production in the UAE, which has forced price cuts.

Raysut bought the United Arab Emirates' Pioneer Cement Industries for $172 million in a deal announced last October. The move added 1.7 million tonnes to Raysut's existing capacity.

"Given the proximity of the newly acquired company to the UAE, we believe Raysut's strategy is aimed at increasing utilization of its plant in UAE, Pioneer Cement," EFG-Hermes said in a note on Thursday.   

Oman plans to spend $77.92 billion in its new five-year economic plan to 2015, the bulk of which will go toward roads, hospitals and education, the sultanate announced in January. - Reuters