SMC buys majority stake in Holcim Philippines

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Metro Manila (CNN Philippines, May 10) — Diversified conglomerate San Miguel Corp. (SMC) said Friday it will acquire a majority share in Holcim Philippines, Inc. (HPI) for $2.15 billion (around P111.8 billion), expanding its cement business.

SMC said it has entered into agreements through its subsidiary First Stronghold Cement Industries Inc. with companies controlled by LafargeHolcim, Ltd., Europe’s largest cement maker, for the purchase of 85.7% of shares in the local cement company. First Stronghold Cement Industries is a wholly-owned subsidiary of San Miguel Equity Investments Inc., which in turn is a wholly-owned subsidiary of SMC.

San Miguel will purchase shares collectively from Holderfin B.V., a Dutch company; Union Cement Holdings Corp.; and Cemco Holdings, Inc.

"The acquisition of HPI will increase the foothold of the San Miguel Group in the cement business, and will provide the opportunity to implement its plan to expand its cement business nationwide," the conglomerate said.

It added that the closing of the deal is still subject to customary and regulatory approvals.

The disclosure followed reports that SMC has won the bid for the Switzerland-based cement company’s business in the Philippines.

These turned traders bullish on SMC, with its share price rising by 3.9 percent. Holcim’s shares closed higher as well by 6.5 percent Thursday.