Heidelberg Materials is in talks with banks to appoint financial advisers as it considers a bid for top South African cement maker PPC, according to people familiar with the matter.

The German building-materials firm already has a presence especially in West Africa and wants to expand on the continent, said the people, who asked not to be identified because the information is private. Heidelberg is weighing a complete acquisition of the 134-year-old Africa-focused cement maker, they said.

Heidelberg declined to comment. Plans are at an early stage and the German company still needs to decide whether to proceed with a formal offer, the people said.

PPC, valued at R9.4-billion, operates mainly in Zimbabwe, Botswana and South Africa. Rival AfriSam South Africa recently received a buyout offer from West China Cement, highlighting rising interest in African assets as builders position for long-term growth.

The continent faces an infrastructure-financing gap of as much as $108-billion a year, according to the African Development Bank, with shortages spanning roads, ports and power.

In South Africa, President Cyril Ramaphosa has pledged to turn the country into a “construction site” to modernize infrastructure and boost growth. He has estimated the nation will need as much as R1.6-trillion in public-sector investment and a further R3.2-trillion from the private sector to meet its infrastructure goals by 2030.

PPC is investing R3-billion in a new plant in South Africa and earnings before interest, taxes, depreciation, and amortization increased by about 28% in 2025 and 22% year to date, CEO Matias Cardarelli said earlier.

“Against this backdrop, it would not be surprising if international cement players are beginning to view PPC as an increasingly attractive opportunity,” he said. He declined to comment on Heidelberg’s interest in the company.

The Public Investment Corporation – which is Africa’s biggest asset manager – Coronation Fund Managers and Venture Capital Partners are among PPC’s top investors.

The deal would add to others Heidelberg is seeking to do. It is increasing its stake in Turkish cement producer Akçansa Çimento and is part of a group in advanced talks to acquire Nordic construction firm NCC's industry unit.

PPC has previously attracted interest from suitors including Dangote Cement, Holcim, CRH and AfriSam Investment Holdings, though no deals were reached.