Consunji’s DMCI in talks to acquire Cemex Philippines
MANILA, Philippines —Tycoon Isidro Consunji-led DMCI Holdings is in talks to acquire Cemex Holdings Philippines, the country’s fourth largest cement maker, as the construction and commodities conglomerate moves to diversify its business.
A source with direct knowledge of the matter said on Wednesday that DMCI is in ongoing talks to buy Cemex Philippines, whose shares rallied nearly 80 percent since Monday amid buyout rumors that were previously reported by Biz Buzz.
“There’s discussions but nothing is formal [at this stage],” the source said.
READ: BIZ BUZZ: Sizzling Cemex shares
Cemex Philippines, which widened losses by 46 percent to P1.2 billion in January to September last year on falling cement prices and sales, was earlier placed on the selling block by its Mexico-based parent firm. Other firms placed bids for the company “but these fell through”, the source said.
“So [Cemex Philippines] is really exiting and this other group is interested,” the source said.
Cemex Philippines’ two-day rally raised its market value to more than P21 billion. Separate sources indicated, however, that the Consunjis were willing pay higher than the current market price to close the deal.
READ: Cemex Philippines’ 9-month losses widen
DMCI said in a stock exchange filing on Wednesday it was evaluating opportunities to expand into the cement business but declined to elaborate on specific talks with Cemex Philippines.
“The company does not have any knowledge on a definitive transaction in this space at this time. Given this, there is no relevant information to report. We will disclose any information at the appropriate time in accordance with the rules and regulations,” DMCI said.
