Cementing dominance
Earlier, the Philippine Competition Commission raised a probable case of monopoly that was pivotal in scuttling a $2.15-billion merger and acquisition deal between San Miguel Corporation and Holcim Philippines Inc.
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Earlier, the Philippine Competition Commission raised a probable case of monopoly that was pivotal in scuttling a $2.15-billion merger and acquisition deal between San Miguel Corporation and Holcim Philippines Inc.
Industry groups have raised concern over the creeping monopoly of conglomerate San Miguel Corp. in the cement industry after dominating the power sector with its host of generating plants.
In February last year, San Miguel Corp., acquired an 88.5 percent stake in affiliate Eagle Cement Corp., which the Philippine Competition Commission said it did not need to look into.
Analysts considered the move as positive for the company, but the inclination of SMC of preeminence in the fields it enters into.
Earlier, the Philippine Competition Commission raised a probable case of monopoly that was pivotal in scuttling a $2.15 billion merger and acquisition deal between San Miguel Corporation and Holcim Philippines Inc.
Had the deal pulled through, SMC could have a veritable cartel in the cement market as it owns a majority of the Pangasinan-based Northern Cement and the Bulacan-based Eagle Cement.
Stakeholders raised serious concerns over a monopoly in the cement industry that they said may result in an uncontrollable increase in commodity prices during a period of robust infrastructure buildup.
After the failed acquisition of Holcim, SMC consolidated its hold on Eagle Cement, creating one of the largest cement companies supplying the key Luzon and Metro Manila markets.
PCC said the deal would not be covered by its rules requiring notification for review.
"With the issuance of the aforementioned notice, the transaction shall not be subject to review by the PCC based on the implementing rules and regulations of the Philippine Competition Act," SMC said.
The conglomerate also owns Southern Concrete Industries Inc., a cement grinding plant in Santa Cruz in Davao del Sur.
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