The Ghana Gas Company Limited is on track to acquire the struggling Ghana Cylinder Manufacturing Company (GCMC) Limited by the end of the first quarter of 2024. This announcement was made by Genevieve Sackey, Managing Director of GCMC Limited, during a Public Accounts Committee (PAC) sitting in Parliament on Tuesday, February 13, 2024.
Sackey disclosed that the acquisition of GCMC by Ghana Gas Company is in its final stages and the necessary documents have been submitted to the Ministry of Finance for forwarding to the cabinet. She expressed hope that the acquisition would be completed by the end of the first quarter of 2024.
GCMC Limited, a State Owned Enterprise (SOE), has been facing financial difficulties, experiencing a loss of GH¢4 million in 2021. Consequently, President Akufo-Addo approved the acquisition of the cylinder manufacturer by Ghana Gas Company in April 2023.
On the other hand, Ghana Gas Company Limited has been one of the most profitable SOEs, reporting a profit of GH¢4.2 billion in 2022.
The imminent acquisition of GCMC by Ghana Gas presents an opportunity for the struggling company to regain stability and access the resources necessary for long-term financial sustainability. This move aligns with the government’s commitment to strengthening and revitalizing the operations of struggling state-owned enterprises in the country.
The acquisition is expected to bring about positive changes for both companies, addressing the financial challenges faced by GCMC and contributing to the continued success and profitability of Ghana Gas Company.
