Heidelberg Materials is reportedly in early discussions with banks about appointing financial advisers as it evaluates a possible offer for South Africa’s largest cement producer, PPC Ltd, according to sources familiar with the matter.
The German construction materials group, which already has operations in several African markets especially in West Africa is considering expanding its continental presence through a potential purchase of the 134-year-old cement manufacturer. However, talks are still preliminary, and no final decision has been made on whether to submit a formal bid, Bloomberg reported.
If the transaction goes ahead, it could lead to a full acquisition of PPC, which operates across South Africa, Botswana, and Zimbabwe, and is currently valued at roughly R9.4 billion.
Growing interest from international cement and infrastructure companies in African assets is being driven by long-term demand linked to urban growth and large-scale construction needs across the continent. In a similar development, South African cement rival AfriSam recently received a takeover proposal from China’s West China Cement, reflecting increasing competition for regional producers.
Across Africa, demand for infrastructure investment continues to expand, with the African Development Bank estimating the continent’s annual financing gap at as much as $108 billion for roads, housing, ports, and energy development.
South Africa faces similar pressures. Johannesburg, often described as the continent’s wealthiest city, is believed to need about R221 billion ($12 billion) to address its infrastructure backlog. President Cyril Ramaphosa has pledged to speed up development efforts to close these gaps.
In 2024, he announced that the country’s infrastructure programme had secured a record R238 billion ($13.3 billion) in investment commitments. Additional external funding has also been secured, including €100 million pledged by France to support struggling municipalities, alongside earlier backing from institutions such as the World Bank.
Meanwhile, PPC is investing around R3 billion in expanding its production capacity and has reported improved financial performance, with EBITDA rising 28% in 2025 and increasing 22% year-to-date, according to CEO Matias Cardarelli.
The company’s shareholders include the Public Investment Corporation, Coronation Fund Managers, and Venture Capital Partners.
Over the years, PPC has repeatedly attracted interest from global cement players such as Dangote Cement, Holcim, CRH, and AfriSam Investment Holdings, although none of the discussions have so far resulted in a completed deal.