Raysut Cement eyes Kenya’s ARM to power its expansion in Africa
The acquisition of the major African producer and supplier is estimated to cost $100 million
MUSCAT/KENYA: Oman’s largest cement manufacturer, Raysut Cement Company is eyeing acquiring ARM Cement of Kenya as part of the company’s aggressive strategy to expand in East and Central Africa.
ARM Cement, which is a producer and major supplier of cement in Kenya and Africa in general recently went into administration with a debt of over $140 million and Raysut has expressed its interest to the administrators to acquire the company, a statement released said on Tuesday.
supplies to in East Africa. early as January 2019. Raysut is also in advanced negotiations with Kampala Cement.
Raysut Cement is one of the major clinker suppliers to the East African region and the ARM assets will fit very well with its plans for East Africa where in the last quarter alone it supplied over 300,000 tonnes of clinker from its home plant at Salalah, Oman to Kenya and Tanzania.
According to industry reports, Joey Ghose, the Group CEO of Raysut Cement had presented a five-year strategy to grow Raysut Cement into a 20 million tonne company by 2022.