San Miguel Corp and Holcim Philippines face opposition to merger deal

San Miguel Corp and Holcim Philippines face opposition to merger deal
10 June 2019

President Rodrigo Duterte of the Philippines has been asked by the construction industry and property developers to call a halt to the proposed US$2.15bn merger between San Miguel Corp (SMC) and Holcim Philippines Inc (LafargeHolcim group) to prevent the emergence of a cartel.

End users of cement are opposed to the prospect of more control of the cement sector going to one  company. Speaking about the deal a spokesperson for those against the deal said," it will definitely result in a cartel because SMC owns a majority of the Panagasinan-based Northern Cement and the Bulacan-based Eagle Cement. This will be grossly disadvantageous to ordinary consumers and the government's Build, Build, Build programme."

A group opposing the deal said, "One of the negative effects of SMC's impending monopoly of the cement industry will be the uncontrollable increases in the prices of cement that will affect the construction of houses, commercial and industrial buildings, and even government infrastructure projects such as road, bridges and school buildings."

Under the merger deal, First Stronghold Cement Industries Inc will buy 85.73 per cent of Holcim Philippines. The protesting groups have called for the matter to the be brought to the immediate attention of the President and the Philippine Competition Commission.

Published under Cement News