With no PCC nod, San Miguel cancels Holcim PH takeover
MANILA, Philippines – Ramon Ang's San Miguel Corporation is no longer acquiring cement maker Holcim Philippines, as it failed to get the necessary clearance from the Philippine Competition Commission (PCC).
San Miguel told the Philippine Stock Exchange on Monday, May 11, that the deal to acquire 85.7% of Holcim shares reached May 10, 2019, has now lapsed.
San Miguel also withdrew the launch of the tender offer of Holcim shares held by its minority shareholders.
The PCC's Mergers and Acquisitions Office earlier raised concerns that the deal might lead to monopoly in the grey cement industry.
In a strongly-worded statement last January, the PCC said the merger might result in "increased market power" and "potential collusion" as well as "substantial lessening of competition in the market for grey cement in 4 key areas in the Philippines."
The commission noted that San Miguel already runs grey cement facilities in Metro Manila as well as in Central Luzon and Northeastern Luzon, as it owns Eagle Cement Corporation and wields control over Northern Cement Corporation.
Meanwhile, Holcim Philippines manufactures, sells, and distributes cement and related aggregates with 8 cement facilities in the country. – Rappler.com