Turkey’s biggest cement maker OYAK to merge publicly traded units
OYAK Holding, the market leader in Turkey’s cement industry, said it will merge five cement companies traded on the Istanbul Stock Exchange.
The decision on the merger was made “to create synergies in line with our strategic plans and our targets for the cement sector”, OYAK said in a statement to the Istanbul Stock Exchange late on Monday.
Turkey’s construction industry has been hit hard by a currency crisis that erupted in August last year. The financial turmoil sent economic growth into a tailspin, led to a slump in housing sales and a sharp slowdown in construction projects.
OYAK said talks between its units had begun on the merger in line with relevant laws and regulations.
The five companies are Adana Çimento, Mardin Çimento, Denizli Çimento, Bolu Çimento, Ünye Çimento and Aslan Çimento. OYAK also owns Denizli Çimento, which isn't listed. The six firms have a total grinding capacity of 22.5 million tonnes per year. Production capacity is about 16 million tonnes per year.
OYAK Group is an industrial and financial conglomerate owned by the Turkish military's pension fund. It also controls Erdemir, Turkey's biggest steelmaker.