Anhui Conch Cement Company Limited (00914) announced receipt of a non-compete undertaking from its controlling shareholder, Anhui Conch Holdings Company Limited (Conch Holdings), in relation to Conch Holdings’ proposed acquisition of Anhui Wanwei Holdings Company Limited (Wanwei Holdings) by way of capital increase. Conch Holdings intends to acquire a 60% equity interest in Wanwei Holdings, thereby indirectly controlling a Wanwei subsidiary, Anhui Wanwei High New Materials Co., Ltd. (Wanwei High New).

Conch Holdings’ acquisition involves assets in cement production and sales through Wanwei High New, which may overlap with Anhui Conch Cement Company Limited’s principal business. To address the potential competition risk, Conch Holdings issued a written commitment that any cement-related assets or operations under Wanwei High New will be disposed of or managed under exclusive arrangements with Anhui Conch Cement Company Limited within three years of completion of the acquisition. Conch Holdings also granted Anhui Conch Cement Company Limited a right of first refusal on any potential disposal of such cement-related assets.

The announcement highlights that any formal agreements involving the cement operations of Wanwei High New could constitute a notifiable and/or connected transaction under applicable listing rules. Shareholders and investors are advised to monitor further disclosures regarding the progress of these potential arrangements. The company indicates that these developments are not expected to materially affect its production or operation and will not harm shareholder interests. If the disposal or management agreements proceed, they will be announced in compliance with relevant regulatory requirements.