Diversified conglomerate DMCI Holdings will acquire the local unit of Mexican cement maker, Cemex Holdings Philippines, for $305.6 million or P17 billion after months of negotiations.
Cemex is divesting from its Asian operations including the sale of its equities in Cemex Asian South East Corporation and subsidiaries APO Cement and Solid Cement.
The Mexican giant is expected to earn a total of $660 million from the deals.
DMCI will acquire all of Cemex Asia B.V.'s shares in Cemex Asian South East Corp, which owns nearly 90 percent of Cemex Philippines, the country's fourth-largest cement maker.
Strategic diversification
"Cement manufacturing will be a good, strategic addition to our business portfolio," DMCI chairperson Isidro Consunji said in a statement.
"We can leverage our group's expertise and create new revenue streams from this acquisition," he added.
Shares in Cemex Philippines rose 16 percent yesterday for a market capitalization of P22.12 billion ($382.9 million) before the deal was announced after the market closed, while DMCI’s shares rose 2.4 percent.
Cemex Asia expects to complete the divestment before the end of the year.
