This archive report was first published on 15 October 2019.
Steel magnate Narendra Raval has made a significant move in the cement industry, taking over cash-strapped Athi River Mining Cement (ARM) after a 45-year leadership by the Paunrana family.
The acquisition, which was finalized on October 15, 2019, will propel Mr Raval to become a top cement producer in the region when the production capacities of National Cement, owned by his Devki Group, and ARM are combined.
Mr Raval paid Sh5 billion for ARM, which is still under receivership. Following the conclusion of the transaction, he will become the largest cement manufacturer in Kenya with the combined production capacity of National Cement and ARM reaching three million tonnes per year.
He promised to retain all the 1,100 workers and also said the salaries of ARM's employees would be harmonised with those of their colleagues at National Cement.
Mr Raval's acquisition of ARM comes after a long battle by the company's former chief executive, Pradeep Paunrana, to resist the takeover. The company was placed under administration on August 17, 2018, and its shares suspended from trading on the Nairobi Securities Exchange three days later.
Mr Raval also revealed plans to sell building materials to employees at half price through an employee Sacco, urging them to form one.
