San Miguel withdraws Holcim takeover

Diversified conglomerate San Miguel Corp. (SMC) on Monday said it will no longer pursue its planned takeover of Holcim Philippines Inc. (HPI), as the $2.15-billion acquisition lapsed without securing the approval of the Philippine Competition Commission (PCC).

In a regulatory filing, SMC said the agreement for its subsidiary First Stronghold Cement Industries Inc. (FSCII) to acquire 85.73% shares of HPI expired in accordance with the terms.

"In view of the above, the proposed acquisition by FSCII of the 86.73% of HPI shall no longer proceed," the disclosure read.

"Accordingly, FSCII withdraws the launch of the tender offer of the HPI shares held by its minority shareholders which was made by the Company on September 23, 2019," it added.

In January, anti-trust wathcdog PCC flagged concerns on the planned acquisition, warning the potential creation of a monopoly in the industry.

Under the Philippine Competition Act (PCA), the PCC is mandated to review mergers and acquisitions to ensure that such deals do not harm the interest of consumers.

San Miguel currently has businesses in beverage, food, and packaging; fuel and oil; energy; infrastructure; and real estate industries. — RSJ, GMA News