SMC, Eagle Cement deal not subject to PCC review

MANILA, Philippines — San Miguel Corp.’s acquisition of an 88.5-percent interest in Eagle Cement Corp. is set to proceed without the need for a Philippine Competition Commission (PCC) review.

SMC, in disclosure to the Philippine Stock Exchange, said it received a notice from the PCC indicating that the deal would not be subject to review.

“While the proposed transaction breaches the thresholds prescribed by the Philippine Competition Act and its implementing rules and regulations, the commission has ruled that based on the documents and information submitted with the form, the proposed transaction is not subject to the notification requirements under the IRR,” the PCC said.

With the issuance of the PCC notice, SMC said the transaction would not be subject to review by the government’s anti-trust body.

“We further advise that as a consequence of the PCC notice, the transaction may proceed subject to the completion of a mandatory tender offer by San Miguel Equity Investments Inc., as purchaser, for the acquisition of 11.5 percent equity interest in ECC held by its minority shareholders, as required under the relevant provisions of the Securities Regulations Code,” it said.

SMC early this month announced plans to acquire an 88.5-percent interest in Eagle Cement, the cement company owned by the Ang family, for P22.02 per share.

The acquisition of Eagle Cement is expected to help improve the cash flow of SMC, which is a diversified conglomerate headed by tycoon Ramon Ang.

Eagle Cement, for its part, owns a cement production facility located in Barangay Akle, San Ildefonso, Bulacan and a grinding and packaging facility in Limay, Bataan.

Its cement bags are sold under the Eagle Cement Advance and Eagle Cement Exceed while its bulk cement is sold under the Eagle Cement Strongcem brand.