German building materials giant Heidelberg Materials is in early talks with banks to appoint financial advisers as it weighs a potential bid for cement group PPC Ltd, a deal that could affect majority-owned PPC Zimbabwe, according to people familiar with the matter.
The German manufacturer, which already operates across several African markets, particularly in West Africa, is looking to expand its footprint on the continent through a possible acquisition of the 134-year-old cement maker.
Discussions are still at an early stage, and Heidelberg has not yet decided whether to proceed with a formal offer, Bloomberg reported.
If completed, the deal could result in a full takeover of the PPC group, which operates mainly in South Africa, Botswana and Zimbabwe.
The potential acquisition comes as global cement and construction companies increasingly target African assets, driven by long-term infrastructure demand and rapid urbanisation across the continent. Rival cement producer AfriSam South Africa recently attracted a buyout offer from China’s West China Cement, underscoring growing competition for regional players.
Infrastructure gap fuels demand
Africa’s infrastructure financing gap is estimated at up to $108 billion annually by the African Development Bank, covering roads, ports, housing, and energy projects.
In South Africa, infrastructure challenges remain significant. Johannesburg, often described as Africa’s wealthiest city, is estimated to require about R221 billion ($12 billion) to address its infrastructure backlog. But President Cyril Ramaphosa has pledged to accelerate infrastructure development.
In 2024, he announced that his infrastructure drive had attracted a record R238 billion ($13.3 billion) in investment commitments. Separately, external support has continued to flow, including funding commitments from international partners such as France, which recently pledged €100 million for struggling South African cities, adding to earlier support from institutions like the World Bank.
PPC itself is investing about R3 billion in a new plant expansion and has reported improved performance, with EBITDA rising 28% in 2025 and 22% year-to-date, according to CEO Matias Cardarelli.
The company’s shareholder base includes the Public Investment Corporation, Coronation Fund Managers, and Venture Capital Partners.
PPC has previously attracted takeover interest from major global cement players, including Dangote Cement, Holcim, CRH, and AfriSam Investment Holdings, although no transaction has been concluded.