The shareholders of Lafarge Africa Plc on Monday, approved the merger with United Cement Company of Nigeria Limited (Unicem), and Atlas Cement Company Limited (Atlas). The Board of Directors of Lafarge Africa received shareholders endorsement at a court ordered meeting in Lagos.
According to the Chairman, Lafarge Africa, Bolaji Balogun, who addressed shareholders, the merger will help to streamline the operations of Unicem and Atlas as well as reduce the operating costs by consolidating the cement manufacturing and marketing businesses for better management and efficiency.
The chairman noted that the realisation of these synergies is expected to result in improved returns to shareholders and be beneficial to other stakeholders, including employees and customers of Lafarge Africa, Unicem and Atlas.
He added that it will also “eliminate cost inefficiencies arising from duplication of resources such human resources, financial reporting, operating and administrative expenses amongst others are expected to be significantly reduced post-merger.”
Lafarge Africa is the sole shareholders of Unicem and Atlas with Lafarge Africa holding an indirect 100 per cent equity shareholding in Unicem and Atlas.
Atlas was commissioned for operation in 2001, in Rivers State, within the Federal Ocean Terminal, Onne, and the plant was operated on a floating vessel, which had a nominal capacity to pack 500,000 metric tonnes (MT) of cement annually.