National Cement Company is targeting to increased cement production after completing acquisition of troubled cement maker, Athi River Mining.
The firm is promising to retain at least 1100 employees of Athi River Mining after buying the firm’s assets and business for 5 billion shillings.
The Competition Authority of Kenya gave the deal a go-ahead provided that National Cement Company absorbs at least 95 percent of the current workforce.
Athi River Mining was placed under administration in August last year over a 19.3 billion shillings debt. The firm was later suspended from trading on the Nairobi Securities Exchange.
The firm’s administrator, Price Waterhouse Coopers inked a deal with Devki Group’s National Cement Company early this year for full acquisition of assets and business at a cost of Kshs 5 billion.
With the deal being approved early this month by the Competition Authority of Kenya, National Cement has completed the deal and promised to retain 1,100 employees.
The deal will help increase cement production as Kenya implements the affordable housing project which targets to put up at least half a million houses in the next three years.
With acquisition of ARM and merging operations with Cemtech in West Pokot, National Cement Company is expected to be the second largest cement manufacturer in the country after Bamburi Cement.