roposed acquisition is an opportunity for the group's cement business to pursue its expansion strategy.
"The acquisition represents an opportunity for the YTL Cement Group to bolster its position as a leading, home-grown, Malaysian-owned cement company," YTL Cement managing director Datuk Sri Michael Yeoh Sock Siong said in a statement.
"Lafarge Malaysia is a strategic fit to the YTL Cement Group’s business and we fully expect that the successful integration of our operations will strengthen our ability to fulfil the group’s regional growth aspirations, drive the expansion of our export markets and continue to develop our intellectual capital and R&D capability,” he said.
Lafarge Malaysia has three integrated cement plants in Langkawi, Kanthan and Rawang, two grinding stations in Pasir Gudang, two drymix plants, more than 30 ready-mix concrete batching plants and two aggregates quarries throughout Peninsular Malaysia.
These facilities are supported by a wide network of depots, terminals and distribution facilities, connected by road, rail and sea.
It was reported that Lafarge Malaysia has a 40% market share of the domestic cement business, while YTL Cement has about 30%.
The takeover makes the enlarged YTL Cement Group the dominant player in the local cement industry.
The mandatory offer, YTL Corp said, provides the group with the opportunity to increase its shareholding in Lafarge Malaysia.
The group, however, plans to maintain Lafarge Malaysia's listing status on Bursa Malaysia, unless it receives more than 90% acceptances.
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