CEMENT firm Holcim Philippines Inc. on Tuesday said it is buying key assets of Lafarge Republic Inc. as part of the global merger of the industry’s two biggest players.
In its disclosure to the Philippine Stock Exchange, Holcim said it will spend a total of P3.09 billion to acquire shares of stock of Lafarge Republic Aggregates Inc., Quimson Limestones Inc., Sigma Cee Mining Corp. and APC Properties Inc.
It will also purchase Star Terminal assets, at the Harbour Centre in Manila, and certain parcels of land.
“The price was determined after a fair valuation of the assets was undertaken. The closing of the transaction shall be subject to the completion of all customary closing conditions as stated in the agreement,” the company said.
Holcim, along with its unit Holcim Mining and Development Corp., executed the deal with Lafarge, Lafarge Holdings (Philippines) Inc., Calumboyan Holdings Inc., Luzon Continental Land Corp. and Broadfields Properties Ltd.
“[There will be] potential synergies in terms of strategic fit of the assets to be acquired with current operations,” Holcim said.
The biggest among the deal is the acquisition of 100-percent shares of stock of Lafarge Republic Aggregates, which the company is buying for P2.64 billion.
Lafarge Aggregates is engaged in manufacturing and dealing in rock, stone, cement, other minerals and builder’s requirements, including quarrying, crushing, selling and dealing of rocks, stone and limestone.
Holcim will also acquire 40 percent of APC for P4.8 million from Broadfields Properties and 40 percent of shares of stock of Sigma Cee Mining Corp. for P9.2 million.
Holcim will also acquire 100 percent of shares of Quimson Limestones, a company engaged in quarrying of limestones and other minerals key for making cement, for P1 million from Calumboyan Holdings.
For the terminal facilities, Holcim is purchasing a unit of Star Terminal’s land and parcels of land in Bulacan for P433 million.
Lafarge, once the country’s second-largest cement manufacturer, is breaking up all of its assets in the country and selling these to various companies, including Holcim and Aboitiz.