Cherat Cement bows out: Fauji Cement joins the fray for Attock acquisition

KARACHI: The race for control of Attock Cement Pakistan Limited has taken a new turn, with Cherat Cement Company Limited formally exiting the acquisition process just as Fauji Cement Company Limited stepped in to replace its parent company as the lead contender in a rival bid.

The rapid sequence of corporate moves, confirmed through filings with the Pakistan Stock Exchange and the Securities and Exchange Commission of Pakistan, has reshaped the contest for one of the country’s most sought-after cement assets.

Just three days after the withdrawal of Cherat Cement, Fauji Cement Company Limited emerged as the new focal point of a competing consortium already in play. In a notification to the exchange, Fauji Cement announced that its board of directors had approved the company to act as the official acquirer, replacing its parent organization, Fauji Foundation, in a joint bid with Kot Addu Power Company Limited. The decision, the company said, was based on overall business synergies, given that Fauji Cement serves as the cement vertical of the Fauji Group.

The move followed the earlier Public Announcement of Intention submitted by Fauji Foundation and Kot Addu Power Company on June 3, 2025, to acquire a combined 84.06 percent of Attock Cement’s issued share capital. Under the revised structure, both Fauji Cement and Kot Addu Power will each acquire an equal portion of shares—42.03 percent apiece—amounting together to the same 115.5 million shares initially targeted by Cherat Cement’s withdrawn bid.

Fauji Cement clarified that the transaction remains contingent on the execution of the final share purchase agreement, completion of related documentation, and regulatory and corporate approvals. The company added that the move reinforces its strategic ambitions within the cement sector, aligning with the broader investment objectives of the Fauji Group.

The back-to-back developments have set the stage for a new chapter in the ongoing Attock Cement acquisition saga. With Cherat Cement’s exit and the Fauji–Kot Addu consortium now advancing as the principal contender, industry observers say the outcome could reshape the competitive landscape of Pakistan’s cement industry, consolidating Fauji Cement’s position among the country’s top producers.

Copyright Business Recorder, 2025