Far Eastern Group to buy cement suppliers in China expansion
Taiwan’s Far Eastern Group is considering the purchase of up to three cement companies in China as it expands into the retailing, materials and chemicals industries in the world’s second-largest economy, Chairman Douglas Hsu said.
The acquisitions in the Chinese cement sector, where the company is ranked 13th, will help Far Eastern achieve its goal of being among the top 10 suppliers within five years, Hsu said without identifying the targets.
Taipei-based unit Asian Cement Corp and Hong Kong-listed affiliate Asia Cement China Holdings Corp. have identified “quite a few” possible targets, with as many as three being likely acquisitions, he said.
Asia Cement climbed 3.3% to TWD$31 (US$1.05) at the 1:30 pm close of trade in Taipei, the biggest jump in more than a year. Taiwan’s seven-member Taiex Cement Index gained 3.6%, while the broader benchmark Taiex rose 1.4%.
“It’s very important for them to buy cement makers to grab the growth opportunity,” said Kevin Lin, who rates Asia Cement “neutral” at Fubon Financial Holding Co in Taipei. “In the next three to five years, retail and banking will provide Far Eastern Group larger growth opportunities.” Published under Cement News
