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The Philippine Competition Commission previously expressed concerns that the deal would lead to a monopoly in the gray cement industry.
MANILA, Philippines – The San Miguel de Ramon Ang Corporation is no longer acquiring cement maker Holcim Philippines as it failed to obtain the necessary authorization from the Philippine Competition Commission (PCC).
San Miguel told the Philippine Stock Exchange on Monday May 11 that the agreement to acquire 85.7% of Holcim shares reached on May 10, 2019 has now expired.
San Miguel also withdrew the launch of Holcim’s public offering of shares held by its minority shareholders.
The PCC Mergers and Acquisitions Office previously voiced concerns that the deal could lead to a monopoly in the gray cement industry.
In a strongly worded statement last January, the PCC said the merger could result in “increased market power” and “potential collusion” as well as “a substantial decrease in competition in the gray cement market by 4 key areas in the Philippines. “
The commission noted that San Miguel already has gray cement facilities in Metro Manila, as well as in central Luzon and northeast Luzon, as it owns Eagle Cement Corporation and exercises control over Northern Cement Corporation.
Meanwhile, Holcim Philippines manufactures, sells, and distributes cement and aggregates related to 8 cement facilities in the country. – Rappler.com
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