MANILA, Philippines - Holcim Philippines Inc. may acquire several assets of Lafarge Republic Inc. (LRI) following a recent multi-billion merger of their parent companies that created the largest cement manufacturer in the world.
The local unit of Switzerland’s Holcim said it is eyeing to purchase LRI’s investments in Lafarge Iligan Inc., Lafarge Mindanao Inc, Lafarge Republic Aggregates Inc., as well as the Star Terminal at the Harbour Centre in Manila.
Aside from the assets mentioned, Holcim Philippines is also considering LRI’s other specific assets or contracts as may be identified and negotiated upon by both parties.
“The results of such negotiation will be submitted to the Holcim Philippines’ board of directors for its approval,” the listed cement maker said.
In a separate disclosure, LRI said the purchase price and the conditions precedent to the closing of the sale would still be subject to the completion of the global merger between Holcim Ltd. and Lafarge S.A.
In July this year, the Philippine units of Holcim of Switzerland and Lafarge of France started charting plans to consolidate their operations as part of the merger between the two global cement giants.
Major stockholders of LRI plan to sell their shares in the company to potential third party buyers subject to agreement on the terms and the completion of the global merger.
The selling shareholders include Calumboyan Holdings Inc., Lafarge Holdings Philippines Inc., Round Royal Inc. and South Western Cement Ventures Inc.
Holcim Philippines produces four cement products namely, Holcim Excel, Holcim WallRight, Holcim Premium Bulk and Holcim 4X that are sold in bags, tonner bags and in bulk.
Its parent firm is one of the world’s leading suppliers of cement and aggregates (crushed stone, gravel and sand) as well as downstream activities such as ready-mix concrete and asphalt. The group holds majority and minority interests in more than 70 countries on all continents.
LRI, meanwhile, manufactures the cement brands Portland, Pozzolan and Type 1P. The cement maker maintains manufacturing plants in Bulacan, Batangas and Rizal.