Holcim PH okays plan to buy Lafarge Republic's assets
MANILA, Philippines — After one year of due diligence, the board of directors of Holcim Philippines, Incorporated finally approved the company’s plan to make an offer and acquire certain assets of Lafarge Republic, Incorporated.
Holcim said in a disclosure to the Philippine Stock Exchange that its board has finally authorized the company to make an offer to acquire some assets owned by its rival Lafarge Republic.
These assets include shares of stock of Lafarge Iligan, Incorporated, Lafarge Mindanao, Incorporated, Lafarge Republic Aggregates, Incorporated, Quimson Limestones, Incorporated, Sigma Cee Mining Corporation, and APC Properties, Incorporated.
Holcim said it also plans to purchase Star Terminal assets located at the Harbour Centre, Manila, and certain parcels of land as identified by the parties.
The cement giant, however, did not disclose its offer price for these assets.
“The offer shall be consistent with the conditions approved by the board based on management’s study on potential synergies in terms of strategic fit of the assets to be acquired with current operations and the results of the financial, tax, technical and legal due diligence undertaken on said assets,” Holcim Philippines said in a disclosure.
The acquisition will come through Holcim Philippines’ wholly-owned subsidiary Holcim Mining and Development Corporation.
The local unit of Swiss cement giant Holcim said its board also authorized its president and chief executive officer Eduardo Sahagun to perform all acts necessary to implement the transaction on behalf of the company.
It was in July 2014 when Holcim and Lafarge agreed to studying merger plans after their parent firms’ plan to create the world’s largest cement manufacturer.
Lafarge Republic currently has 3 plants located in Bulacan, Batangas and Rizal. Its subsidiaries are composed of Fortune Cement Corporation; Lafarge Iligan, Incorporated; Lafarge Mindanao, Incorporated; FR Cement Corporation; and Lloyds Richfield Industrial Corporation.
Holcim Philippines, meanwhile, operates 4 major plants — one in La Union, another in Bulacan, a third in Davao City and the Lugait Plant in Misamis Oriental. — Rappler.com
Cement bags image from Shutterstock