THE CONSUNJI group has officially entered the cement manufacturing business after completing the acquisition of a majority stake in listed cement producer Cemex Holdings Philippines, Inc. (CHP), with the deal priced at $272 million (P15.96 billion).
Consunji-led companies DMCI Holdings, Inc., Semirara Mining and Power Corp. (SMPC), and Dacon Corp. finalized on Dec. 2 the purchase of Cemex Asian South East Corp. (CASEC), which owned 89.86% of CHP.
DMCI clinched a 51% effective stake in CHP, while Dacon Corp. and SMPC accounted for 29% and 10%, respectively, at the financial close of the transaction.
CHP is the fourth-largest cement producer in the country.
The deal signals the Consunji group’s entry into the cement manufacturing sector.
DMCI and SMPC Chairman Isidro A. Consunji was named CHP chairman with the completion of the transaction, replacing Sergio Mauricio Menendez Medina.
“We are excited to welcome CHP into the DMCI group. This acquisition aligns with our core expertise in engineering and construction and dedication to contributing to the infrastructure development of the Philippines,” Mr. Consunji said in an e-mailed statement on Tuesday.
DMCI Chief Finance Officer Herbert M. Consunji has been named CHP’s president and chief executive officer, succeeding Luis Guillermo Franco Carrillo.
He will spearhead the cement manufacturer’s turnaround efforts to further streamline operations and unlock synergies.
“Our priorities are to enhance the logistics network, optimize the product mix, manage production and operating costs, and leverage potential operating synergies within the DMCI ecosystem,” Mr. Consunji said.
The Consunji group expects to grow its annual cement production capacity to 7.2 million tons by early 2025 once the expansion plan of CHP-owned Solid Cement Corp. is completed.
Aside from Solid Cement, CHP also owns APO Cement Corp. The two companies have a total annual capacity of 5.7 million tons.
The acquisition is also expected to boost the DMCI ecosystem, with markets for coal, long-term contracted power capacity, fly ash, and cement products.
On Tuesday, DMCI shares rose by 0.19% or two centavos to P10.80 apiece; SMPC stocks climbed by 1.1% or 35 centavos to P32.30 each; and CHP shares dropped by 2.65% or five centavos to P1.84 per share. — Revin Mikhael D. Ochave
