SMC drops bid to acquire Holcim | Inquirer Business
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SMC drops bid to acquire Holcim

/ 04:02 AM May 12, 2020

The $2.15-billion takeover deal that could have brought the biggest local cement manufacturer back to Filipino hands fell through due to lack of clearance from the Philippine Competition Commission (PCC).

San Miguel Corp. (SMC) is no longer pushing through with the acquisition of Holcim Philippines Inc. as the agreement it had signed with the sellers on May 10, 2019, expired without obtaining approval from the PCC.

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Shares of Holcim Philippines tumbled by P2.55 or 22.57 percent at the stock market to close on Monday at P8.75 each, giving it a market capitalization of P72.9 billion.

“Most investors were surprised,” said Astro del Castillo, managing director at local fund management firm First Grade Finance, noting that people had expected that the PCC’s antitrust concerns on SMC’s takeover of Holcim Philippines would be addressed. But while Holcim Philippines’ stocks nosedived, shares of SMC inched up by 0.52 percent to close at P97 on Monday.

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The collapse of the deal means that the LafargeHolcim group may reopen the local unit to a new round of bidding.

SMC was supposed to acquire 85.73 percent of Holcim Philippines through First Stronghold Cement Industries Inc. (FSCII).

With the acquisition no longer imminent, SMC disclosed to the Philippine Stock Exchange on Monday that FSCII was likewise withdrawing the tender offer made to minority shareholders of Holcim Philippines on Sept. 23, 2019. INQ

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