Business

SMC drops $2.15B Holcim takeover

A $2.15 billion takeover of Holcim Philippines Inc. by San Miguel Corp. has been formally scrapped after the deal failed to get the nod of the Philippine Competition Commission.

A $2.15 billion takeover of Holcim Philippines Inc. by San Miguel Corp. has been formally scrapped after the deal failed to get the nod of the Philippine Competition Commission.

In a regulatory filing, SMC said its agreement to acquire a total of 5.53 billion shares of Holcim or 85.7% of the cement firm had lapsed without getting the approval from the anti-trust watchdog.

Completion of the deal required the approval of the Philippine Competition Commission which was not met.

Accordingly, SMC has withdrawn the launch of the tender offer for shares held by Holcim minority shareholders.

The PCC has raised concern over the proposed transaction, saying it may result in monopoly or collusion arising from what could be the largest merger and acquisition deal in the local cement industry.

Under the competition law, mergers and acquisitions that are deemed large enough to be potentially anticompetitive are subject to the PCC’s review.

In particular, PCC said the deal may result in a monopoly in the market for grey cement in northwest Luzon.

Holcim, a subsidiary of global cement giant LafargeHolcim Ltd., has eight cement facilities in the country.

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