DMCI keen on entry into cement business

MANILA, Philippines — The Consunji Group is looking to pursue its entry into the cement business with the acquisition of Cemex Holdings Philippines (CHP).

“We hope,” DMCI Holdings Inc. (DMCI) chairman Isidro Consunji told The STAR when asked if the CHP acquisition will push through. 

“We’re looking at it,” he said.

Consunji, however, said he does not know when the deal could be completed.

DMCI earlier said it is looking to diversify into new industries, with the company evaluating several opportunities to expand into new verticals such as the cement business.

Among those being considered is a potential acquisition of CHP.

The acquisition is seen benefitting DMCI as cement is a key input in some of the group’s major businesses. It could also help in managing the costs of its property arm.

A source with direct knowledge of the matter confirmed last month ongoing talks between DMCI and CHP for a possible acquisition, noting that both parties are “looking at the numbers.”

The source said Cemex “really wanted to sell and are really exiting” and DMCI happens to be interested.

Reuters, quoting an unnamed source, earlier reported that the acquisition of CHP “could be worth around P40 billion ($715 million), based on Cemex Philippines’ book value of P3 per share.”

CHP is an indirect subsidiary of global construction materials company Cemex, S.A.B. de C.V., a global construction materials company.

The company produces and markets cement and other building materials in the Philippines.

Its Island and Rizal cement product brands are sold in Luzon, while the APO brand is sold in Visayas and Mindanao.

DMCI, meanwhile, has a diversified investment consisting of construction, real estate, coal and nickel mining, power generation and water distribution.