Lahore: Maple Leaf Cement Factory Limited has announced a significant development in the cement industry with the approval of a merger scheme with Pioneer Cement Limited (PIOC). The decision was taken during a board meeting held on September 2, 2026. The merger is subject to the approval of shareholders, requisite permissions, and the sanction of the Scheme of Arrangement by the Lahore High Court, along with the fulfillment of all legal requirements.

According to the details outlined in the disclosure report, the merger will involve the amalgamation of the entire undertaking of Pioneer Cement Limited, including its assets, liabilities, privileges, obligations, rights, and business, into Maple Leaf Cement Factory Limited. To facilitate this merger, an aggregate of 136.17 million ordinary shares of Maple Leaf Cement will be issued to the shareholders of Pioneer Cement, based on a swap ratio of 2.65 ordinary shares of Maple Leaf Cement for every one ordinary share of Pioneer Cement. Consequently, Pioneer Cement will stand dissolved without winding up, and its shares, including those held by Maple Leaf Cement, will be canceled.

The effective date for the scheme is set for July 1, 2026. A joint petition regarding the proposed scheme will be filed with the Lahore High Court, and the scheme will be circulated to the Pakistan Stock Exchange Limited and the shareholders, subject to directions from the court.

This merger is anticipated to create a more robust entity within the cement industry, potentially affecting market dynamics. According to information available from the Pakistan Stock Exchange (PSX), the merger is expected to streamline operations and enhance the market presence of the combined entity. The merger aligns with the strategic goals of both companies to optimize resources and expand their market footprint.