Eagle Cement says not involved in SMC-Holcim deal
MANILA, Philippines — Eagle Cement Corp. said Wednesday it was not involved in San Miguel Corp.’s proposed acquisition of Holcim Philippines, which Philippine antitrust regulators said could lessen competition in the country’s grey cement market.
Eagle Cement made issued the clarification in a disclosure to the stock exchange in response to a news report.
SMC unit First Stronghold struck the deal with Holcim for the acquisition of the latter’s 85.73 percent stake or 5.53 billion common shares.
In its review, the Philippine Competition Commission’s Mergers and Acquisitions Office said the merger may result in a monopoly and collusion in four key areas in the Philippines.
READ: PCC flags SMC-Holcim deal
According to PCC, the merger eliminates Top Frontier’s only competitor in the northwest Luzon area, which will result in a monopoly in the market for grey cement.
“In Greater Metro Manila, Central Luzon, and Northeast Luzon, the transaction results in high combined market shares, allowing Top Frontier to control a majority of the supply in these areas,” the PCC said.
The competition watchdog also said the transaction increases the likelihood of firms to engage in coordinated behavior in Greater Metro Manila, Central Luzon, and Northeast Luzon.
Among the anti-trust concerns that may arise post-transaction include insufficient imports in the relevant markets to constrain the merged parties. — Ian Nicolas Cigaral with a report from The STAR/Catherine Talavera
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