Raysut Cement Company, one of the largest cement manufacturers in Oman, has announced the acquisition of its rival, Sohar Cement Factory for $60 million as part of plans to boost its capacity in rapidly growing markets, particularly Africa.
The acquisition brings Raysut Cement’s cement capacity to 6.4 million tonne per annum, the company said in a statement. The Muscat Securities Market-listed company had purchased all of Sohar Cement’s shares effective May 19, and said that integration of the company, which is located at the Sohar Industrial Estate, will begin immediately.
Raysut had earlier outlined its plans to expand its reach through acquisitions in Africa. For its next expansion phase, the Omani cement group will be looking at India, where it is likely to enter through acquisitions, the statement continued.
“The acquisition of Sohar Cement forms part of Raysut’s ambitious plan to expand its capacity in 2019 to not only supply to its domestic higher demand Northern markets but also to service the rapidly growing markets, particularly in Africa and to focus on diversification and grow outside the Gulf region,” remarked CEO Joey Ghose.
The Sohar acquisition also includes taking over the 20% stake of Fujairah Cement in the company, stated the top official.
“We are looking at an aggressive expansion strategy from 2019 with a view to eventually expand our production to 20 million tonnes per annum,” noted Ghose.
The company had posted a growth of 26.6% in revenues last year with turnover recorded at $236 million, a significant growth from the $186 million posted in 2017.