DMCI Holdings and two other companies controlled by Philippine tycoon Isidro Consunji have agreed to buy Mexico's CEMEX's Philippine cement business for $305.6 million. The company is looking to capitalize on the country's construction boom.
The deal, announced this week, will see Consunji-listed flagship DMCI, its shareholders Deacon Corp and Semirara Mining and Power Division, acquire CEMEX Asia South, which owns approximately 89.9% of Manila-listed CEMEX Philippines shares. The company will acquire East Corporation.
“Cement manufacturing will be a good addition to our business portfolio,” Consunji, chairman of DMCI, Decon and Semirara, said in a statement. “We can leverage the group's expertise and generate new revenue streams from this acquisition.”
DMCI started as a construction company founded in 1954 by Isidro's father, David Consunji, and has diversified in recent years, with current interests in real estate, mining, power and water.
The CEMEX transaction is expected to close by the end of the year, subject to regulatory approvals and the completion of a compulsory takeover offer for the remaining 10.1% stake in CEMEX Philippines.
Upon completion of the transaction, DMCI will own 51% of CEMEX Philippines, Decon, the Consuji family's private holding company, will own 39% and Semirara will own the remainder. CEMEX Philippines is one of the country's largest cement manufacturers, producing 5.7 million tons of cement annually, with an additional 1.5 million tons of capacity expected to come online later this year, DMCI said.
DMCI Holdings is one of the Philippines' largest conglomerates with a market capitalization of $2.5 billion. Isidro Consunji and his brother took over the company after his father David, a giant in the Philippine construction industry, passed away in 2017. With a net worth of $2.9 billion, the family was ranked 8th on the list of the Philippines' 50 largest companies. “The Richest” was published last August.
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