LafargeHolcim, has lapse Philippines' deal with San Miguel Group worth of US$2.5 billion after the authority not give approval in time - Photo by the Company

JAKARTA (TheInsiderStories) – One of the largest cement producer in the world, LafargeHolcim, has lapse Philippines’ deal worth US$2.5 billion after the authority not give approval in time, said the company today (05/11). In May 2019 the company signed an agreement with industrial group, San Miguel Corp., for the sale of its entire 85.7 percent shareholding in Holcim Philippines Inc.

“The PCC (Philippines Competition Authority) did not issue an approval of the transaction within the required time period and consequently the agreement lapsed,” it said in an official statement.

Recently, Holcim Philippines has resumed operations in three out of its four integrated cement plants. LafargeHolcim said will continue to focus on strengthening its leadership in the Philippines, one of the most high-growth countries in the Asia-Pacific region.

In 2018, the Swiss multinational company, has sold 80.6 percent of PT Holcim Indonesia Tbk (IDX: SMCB) to state-owned cement producer, PT Semen Indonesia Tbk (IDX: SMGR). The publicly listed firm bought the shares for $917 million. Now, the company has change the brand with PT The proposed acquisition will be undertaken by PT Solusi Bangun Indonesia.

The Indonesian assets included the entirely of LafargeHolcim operations in the country, which consists of four cement plants, 33 ready-mix plants and two aggregate quarries. According to Jan Jenisch, CEO of the company, the company’ focused are to raises at least CHF2 billion ($2.06 billion) in investments until 2020.

Solusi Bangun has suffered from overcapacity and price pressure in recent years, placing pressure on profit margins. Nevertheless, the long-term potential of the market and the company’s strong market position make this a significant and surprising move.

For Semen Indonesia, the acquisition will significantly strengthen the domestic footprint through the acquisition of the third largest cement company in Indonesia, with capacity of 14.8 metric ton (MT) of cement per annum capacity and 30 ready-mix plants.

US$1: CHF0.97

Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com