In one of the most significant corporate diversification moves on the Pakistan Stock Exchange (PSX) this year, Cherat Cement Company Limited (CCCL) has signed share purchase agreements to acquire a commanding 64.07 per cent stake in Nimir Industrial Chemicals Limited (NICL) for approximately Rs24.09 billion.
The transaction marks a monumental shift for the cement manufacturer, rapidly escalating its ambitions from a minority investment to a full majority takeover. In a regulatory notice submitted to the PSX on Monday, Cherat Cement confirmed that it had formalised two separate agreements on October 30, 2026, locking in the purchase of 70,858,178 ordinary shares at an agreed price of Rs340 per share.
Transaction Breakdown and Valuation
The acquisition is structured across two distinct agreements designed to consolidate majority control. Under the primary agreement, Cherat Cement will acquire 56,401,178 ordinary shares directly from NICL’s majority controlling shareholders. This tranche represents a 51 per cent slice of the chemical company’s issued share capital and is valued at approximately Rs19.18 billion.
A secondary agreement simultaneously secures an additional 14,457,000 ordinary shares—equivalent to 13.07 per cent of the issued capital—from specific non-controlling shareholders. This additional block of shares is valued at approximately Rs4.92 billion.
Combined, the two transactions will deliver Cherat Cement a 64.07 per cent shareholding in NICL, transforming the cement manufacturer into the principal holding entity for one of Pakistan’s leading chemical producers. The finalisation of the transaction remains subject to rigorous regulatory clearances, including approval from the Competition Commission of Pakistan (CCP), the Securities and Exchange Commission of Pakistan (SECP), and the fulfillment of specific conditions outlined in the purchase agreements.
Also Read: US-Backed Consortium Proposes $4.4 Billion LNG Hub And Pipeline In Pakistan
Strategic Pivot Amid Cement Sector Pressures
The aggressive expansion into the chemical sector highlights a broader strategic pivot by Cherat Cement, a flagship entity of the Ghulam Faruque Group. Pakistan’s cement industry has recently faced a challenging macroeconomic environment, contending with subdued domestic construction demand, soaring energy tariffs, and heavy taxation burdens.
By acquiring Nimir Industrial Chemicals, Cherat Cement is effectively hedging against the cyclical nature of the construction sector. NICL is a highly diversified chemical manufacturer producing oleo chemicals, chlor-alkali, soap noodles, and personal care ingredients. Its deep integration into Pakistan’s fast-moving consumer goods (FMCG) and textile supply chains offers Cherat Cement a resilient, high-margin revenue stream that is largely insulated from the volatility of infrastructure spending.
From Minority Interest to Majority Control
The scale of Monday’s announcement significantly eclipses the company’s original public disclosure. Cherat Cement initially signalled its interest in NICL on September 10, stating its intention to acquire at least a 30 per cent stake.
On September 14, the company published a formal Public Announcement of Intention, proposing to acquire a minimum of 33,177,164 ordinary shares, pending extensive due diligence and the finalisation of commercial terms. The leap from a 30 per cent target to a 64.07 per cent controlling stake suggests that the due diligence process revealed strong operational synergies and financial health, prompting the acquirer to consolidate absolute control over the target company’s board and future strategic direction.
Cherat Cement has stated it will continue to keep the stock exchange and its shareholders informed as the transaction progresses through the regulatory approval phases. If successful, the acquisition will redefine the company’s corporate identity, transitioning it from a pure-play cement manufacturer into a diversified industrial conglomerate.