MANILA, Philippines — Holcim Philippines Inc. is proposing to acquire three companies under Lafarge Republic Inc. that are engaged in cement-making and related businesses as well as a port terminal facility in Manila’s Harbour Centre in line with the global merger of their parent companies.
As part of the $40-billion merger plan of global cement giants Holcim and Lafarge, their Philippine units are mapping out a combination and rationalization of Philippine assets seen leading toward the creation of a local cement powerhouse with a combined market share of over 60 percent.
In a disclosure to the Philippine Stock Exchange on Tuesday, Holcim Philippines said it was considering to negotiate the purchase of Lafarge Republic’s investments in shares of stock of Lafarge Iligan, Inc., Lafarge Mindanao, Inc. and Lafarge Republic Aggregates Inc. as well as its Star Terminal at the Harbour Centre, Manila and other specific assets or contracts as may be identified and negotiated between the parties.
The parties will now negotiate on the purchase price and conditions before submitting the results to the respective boards of both Philippine units.
Lafarge Iligan, which was established in 1967, manufactures cement at a facility located in Barangay Kiwalan, Iligan City.
Lafarge Mindanao Inc. suspended its manufacturing operations in 1999 but is now contracting for the manufacture of cement from affiliates for distribution under its brand.
Lafarge Republic Aggregates supplies rock, stone cement and other minerals required by builders including quarrying and crushing. It has a plant in Angono, Rizal, and is engaged in quarrying operations covered by mineral production sharing agreement with a term of 15 years from 2008. In late 2012, it commissioned a new plant that will enable it to supply an additional two million metric tons of aggregates a year.
On the other hand, the port terminal at Manila Harbour was purchased last year for the easier dispatch of its products. The terminal gives Metro Manila customers a more accessible pick-up point for cement purchases.
Holcim has an estimated 34 percent market share in the Philippines. It has a capacity of 9.3 million metric tons of cement plus 6.5 million metric tons of clinker. Lafarge, on the other hand, has an estimated market share of 28 percent.
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