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Metro Manila (CNN Philippines, May 11) – San Miguel Corporation canceled its plan to acquire a majority stake in cement maker Holcim Philippines after failing to secure regulatory authorization.
The aforementioned conglomerate said in a statement Monday that the one-year deadline to complete the merger prescribed by the Philippine Competition Commission has expired.
On May 10, 2019, SMC announced the agreement to acquire 85.73 percent of Holcim for $ 2.15 billion (around ₱ 108 billion) through its subsidiary First Stronghold Cement Industries Inc., which would give it control of the company. Existing rules require major merger agreements like this to be approved by the regulator within a year of their execution, which ended this week.
Holcim Philippines, a unit of global giant LafargeHolcim Ltd., manufactures and distributes gray cement and its aggregates at eight facilities.
The antitrust agency marked the SMC-Holcim merger agreement in January, saying the purchase could lead to “monopoly, increased market power and possible collusion” in cement production. San Miguel said the deal “will no longer continue” and that the public offer made to minority shareholders last September was also withdrawn.
In addition to First Stronghold, PCC also said that Ang’s position as president of Eagle Cement Corporation makes it a sister company, effectively eliminating competition in areas like Northwest Luzon. This deal would also make it difficult for new players to challenge Ang’s owned cement producers in Greater Metro Manila, Central Luzon and Northeast Luzon, the regulator added.
Eagle Cement has denied operating under the SMC wing, saying it is not involved in the merger agreement.
With the deal collapsed, Holcim Philippines will remain under the control of Union Cement Holdings Corporation with a 60.55 percent stake, as well as global firm Holderfin BV (18.11 percent) and Cemco Holdings, Inc. (7.08 percent), he said. the company to the local exchange.
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