Consunji eyes Cemex PH cement business | Inquirer Business

Consunji eyes Cemex PH cement business

/ 02:30 AM February 08, 2024

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 readies its massive cash pile to diversify its business.

A source with direct knowledge of the matter said on Wednesday that DMCI is in discussions to buy Cemex Philippines, whose shares have rallied by nearly 80 percent since Monday amid buyout rumors that were previously reported by Biz Buzz.

“There [are] discussions but nothing is formal [at this stage],” the source said.


READ: BIZ BUZZ: Sizzling Cemex shares


According to the source, there were other groups that placed bids for Cemex Philippines “but these fell through.”

“So [Cemex Philippines] is really exiting and this other group (DMCI) is interested,” the source added.

Cemex Philippines, which widened losses by 46 percent to P1.2 billion during the first nine months of 2023 on falling cement prices and sales, had been earlier placed on the selling block by its Mexico-based parent firm.

Cheaper imports

Added pressure was caused by the proliferation of cheaper imports, straining the bottom line of local manufacturers, a cement industry veteran told the Inquirer.

DMCI, which had cash and equivalents of P38.6 billion as of end-September 2023, is seen to have the advantage of integrating cement production with its other businesses such as housing and infrastructure construction, alongside its vast resources of coal, which can fuel cement manufacturing.

“It makes sense to integrate than be a standalone cement maker,” the cement industry source said.


READ: DMCI to enter cement business

Gabryle Aguila, head of equity research at Unicapital Securities, recalled that DMCI and energy and coal mining subsidiary Semirara Mining and Power Corp. had expressed interest to expand into the cement business as early as 2017.

“With [Cemex Philippines] being in the red …, there may be a deal that would allow the Consunjis to acquire a ready-to-operate plant versus its previous plans to take three years to build its own plant,” Aguila told the Inquirer.


This is the latest in a series of consolidation moves over the past two years that have led to cement giants Holcim Philippines and tycoon Ramon Ang’s Eagle Cement going back to private hands.

Cemex Philippines’ two-day rally raised its market value to more than P20 billion. Shares of the cement maker slipped 1.54 percent to P1.54 each by Wednesday’s close while DMCI shares shed 2.37 percent to P10.72 each.

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.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

“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.

TAGS: acquisition, Cemex, Consunji

© Copyright 1997-2024 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.