Australia: Boral has endorsed Seven Group Holdings' (SGH) increased takeover offer after the bidder enhanced its proposal. According to Business News Western Australia, Boral is now recommending its shareholders accept SGH's offer, previously rejected in March 2024. The offer has risen from an initial US$0.98/share to a maximum of US$1.11/share. An on-market buyback is also an option at up to US$4.19/share, with total shareholder value estimated between US$4.02 and US$4.17.

Boral's independent corporate advisory company, Grant Samuel, now finds the offer ‘reasonable’. SGH has increased its stake in Boral to 78.8% and proposes further governance adjustments by adding two more executives to Boral's board.

Managing director of SGH, Ryan Stokes, said "We are pleased to offer Boral shareholders the maximum consideration under our offer. Both new and existing SGH shareholders also stand to benefit from the US$0.20/share fully franked dividend that SGH will pay following completion of the offer." The offer period is extended to 15 May 2024.

China: Shares of China Tianrui Group Cement plummeted by 99% in just 15 minutes before Hong Kong’s stock market closed on 9 April 2024, according to Reuters. This led to a decrease in the market value of the company, to US$17m from US$1.86bn. The cause of the sudden drop remains unknown and trading in Tianrui shares is suspended pending an announcement on ‘inside information’.

In the 2023 financial year, the company recorded a net loss of US$45.8m, compared to its US$62m net profit in 2022. This downturn is partly attributed to the struggles in China's property sector.

Nigeria: The government has threatened to reopen borders for mass cement importation if local producers do not reduce prices. The Minister of Housing and Urban Development, Ahmed Dangiwa, said that the country had recently seen a ‘recurring and concerning increase in the price of cement’, according to the People’s Daily newspaper. Recent price hikes have threatened an agreement made in February 2024 to stabilise the price of cement. The government had previously halted cement imports to boost local production and affordability, yet producers cite high fuel and equipment costs as factors driving up prices.

The Cement Manufacturing Association of Nigeria has been criticised for its inaction in price regulation. Dangiwa said “The association is expected to monitor price control, otherwise it has no need to exist.”

South Africa: Afrimat has received approval to acquire all of Lafarge South Africa and its subsidiaries. The acquisition has been structured as a locked box transaction, effective 31 December 2022, and the purchase is valued at US$6m. Afrimat also agreed to repay its loan amounts owed equating to US$47.8m. Afrimat confirmed the acquisition of the LSA Group, part of the Holcim Group, on 10 April 2024.

CEO Andries van Heerden said "The time was perfect for Afrimat to return to its roots of quarrying and aggregates to support long-term diversified sustainability across the group." He added that CFO Pieter de Wit will serve as the full-time integration manager to ensure integration of the two entities.

Pieter de Wit said "This exciting deal forms part of the Afrimat group’s ongoing diversification strategy. It will increase Afrimat’s offering in the construction materials space, by expanding the group’s quarry and ready-mix operations nationally."

The deal will bring 800 Lafarge employees to Afrimat. The acquisition also includes Lafarge's fly ash operations and a grinding plant. Funded primarily in cash, Afrimat's move comes at a time when the construction materials sector is experiencing increased demand, driven partly by state initiatives and a ‘robust’ residential building market in coastal regions.