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Anhui Conch to Double West China Cement Stake in Consolidation

  • Company currently has 21.17% holding in West China Cement
  • Transaction comes amid overcapacity in the cement industry

Anhui Conch Cement Co. agreed to more than double its stake in smaller rival West China Cement Ltd. for HK$4.59 billion ($592 million) amid consolidation in an industry suffering from overcapacity.

Conch International Holdings (HK) Ltd., a wholly owned unit of Anhui Conch, plans to increase its holding in Shaanxi-based West China to 51.57 percent from the current 21.17 percent, the companies said in a filing to the Hong Kong exchange Friday. If the transaction goes through, Anhui Conch will have to make a mandatory cash offer for all shares of West China it doesn’t own, the filing showed.