Muscat: Following a letter of intent it signed early this year with Sohar Cement Factory’s shareholders, Oman’s largest cement manufacturer and one of the Gulf’s largest, Raysut Cement Company on Sunday announced the complete acquisition of Sohar Cement Factory at a value of US$60 million.
In a statement, the Muscat Securities Market-listed Raysut said that it has purchased all of Sohar Cement’s shares effective May 19, 2019 and will immediately begin integration of the company located at the Sohar Industrial Estate in Oman.
“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,” said Raysut Cement Chief Executive Joey Ghose.
He said the Sohar acquisition also includes taking over the 20 per cent stake of Fujairah Cement in the company.
Raysut had earlier outlined its plans to expand its reach through acquisitions in Africa. As a next expansion phase, Raysut Cement will be looking at India, where it is likely they will enter through acquisitions. This acquisition brings up Raysut Cements cement capacity to 6.4 million tonnes per annum.
“We are looking at an aggressive expansion strategy from 2019 with a view to eventually expand our production to 20 million tonnes per annum,” Ghose said.
The company had posted a growth of 26.6 per cent in revenues last year with turnover recorded at OMR91 million, a significant growth from OMR71.8 million in 2017.