South Africa’s PPC proposed merging with its nearest rival Afrisam on Monday, in a renewed attempt to combine the two and an effort to lead consolidation.
PPC, which abandoned talks with Afrisam two years ago, said it had revived discussions about a potential merger, sending its shares to their highest level in nine months.
“We think that consolidation in the industry will start to happen and we’ve got to make a choice as to whether we want to be the architects and lead that … or … let it happen around us and not be sure of the outcome,” PPC’s chief executive Darryl Castle told Reuters following the announcement.
Afrisam, which is majority owned by the Public Investment Corporation pension fund, first proposed a merger in 2014 when PPC’s share price had been under pressure due to infighting between its board and former chief executive.
“The parties have independently concluded that current market circumstances warrant entering into formal discussions to consider the proposed merger,” PPC said in a statement.
Full Content: Reuters
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