Cherat Cement to Buy 51% Stake in Nimir Industrial Chemicals for Rs. 19.2 Billion

Cherat Cement Company Ltd. has reached an agreement to acquire a 51% stake in Nimir Industrial Chemicals Ltd., signaling a strategic expansion by the cement producer into Pakistan's industrial chemicals sector. The transaction, documented in a notice to the Pakistan Stock Exchange on Monday, involves the purchase of 56.4 million shares at Rs.

340 each, resulting in a valuation of approximately Rs. 19.2 billion. The deal, which is contingent upon certain conditions and regulatory approvals, is expected to provide Cherat Cement with a presence in the industrial chemicals market, a sector where Pakistani manufacturers are currently facing challenges due to rising energy and financing expenses.

Nimir Industrial Chemicals, a listed company on the PSX, specializes in the production of chemicals such as caustic soda and allied products that find applications in various industries including textiles, soaps, and detergents. The identity of the selling shareholders and the anticipated timeline for the completion of the acquisition have not been disclosed by either company.