LAGOS (Reuters) - Nigeria's biggest cement maker Dangote Cement will list on the stock exchange on November 5 after a planned merger with Benue Cement, creating the country's largest company by market capitalisation ahead of an anticipated building boom.

The deal values the newly-formed Dangote Cement Plc at around $14 billion through the listing of 15.5 billion shares at a price of 135 naira. Benue Cement shareholders will receive one share for every two Benue shares held, according to a statement from the stock exchange.

Merger documents seen by Reuters said shares in Benue Cement, which were already trading at the pre-merger price of 67.50 naira on Tuesday, would be suspended on October 22 before trading in Dangote Cement shares begins on November 5.

The newly listed company, owned by billionaire tycoon Aliko Dangote, will account for more than a third of the total capitalisation of the Nigerian Stock Exchange, which currently stands at 5.94 trillion.

Dangote, one of only two Nigerians on the Forbes billionaires list, already owns 75 percent of Benue and the stake of his Dangote Group in the new entity will rise to 95.9 percent after the deal.

The free float of the new entity will be 4.1 percent. The merger stills needs final approval from shareholders in both companies and from the Securities and Exchange Commission (SEC).

"The primary objective of the merger is to streamline the management and governance of both companies," Dangote said in a letter to shareholders in the two firms, adding that all the necessary pre-merger approvals had been received.

He said the scale of the new entity would allow it better access to financing, as well as consolidating supply and distribution chains, reducing costs and helping increase cement production more quickly.

Nigeria's cement industry is gearing up for a sharp increase in output in the coming years as government and private sector infrastructure spending rises.

The Cement Manufacturers' Association of Nigeria expects production to rise to 20 million metric tonnes by 2012, almost double the level expected this year and a figure which could turn the country from a net importer to an exporter.

Demand from the rest of Africa is also expected to rise and Dangote has said he wants to position the company to be able to meet that need.

"Growth is expected to be very rapid if the government commences work towards its Vision 2020 programme for housing and transportation, which according to industry estimates would consume about 919 million metric tonnes of cement over the next ten years," Dangote said in the letter.

The Dangote Group, one of Nigeria's largest conglomerates, already controls more than half of the local cement market with its wholly owned Obajana and Ibese plants, the controlling stake in Benue Cement, its role as a joint venture partner in Unicem Cement and four import terminals.

The merger documents estimated earnings per share of the new entity would reach 16.98 naira in 2011, compared with standalone earnings per share this year of 5.26 naira for Benue and 7.85 naira for Dangote Cement.

It also expected to pay a dividend of 11.99 naira per share for 2011 if the merger goes ahead.

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