In May 2019 LafargeHolcim signed an agreement with San Miguel Corporation for the sale of its entire 85.7% shareholding in Holcim Philippines subject to customary and regulatory approvals, including a one-year window to complete the merger stipulated by the Philippines Competition Authority (PCC).
The PCC did not issue an approval of the transaction within the required time, and consequently, the agreement has lapsed.
A statement from LafargeHolcim read: "With today's unprecedented COVID-19 crisis, Holcim Philippines' number one priority is to protect the health of its people while supporting its partners and communities, in full alignment with local authorities. The Group is very proud of its people's swift response to this new reality, for example, their extraordinary participation in providing food, water and other essential products for their communities as well as medical protective equipment for government frontline staff.
"With construction playing an essential role to keep society running, Holcim Philippines has resumed operations in three out of its four integrated cement plants and is well-positioned for a quick and efficient recovery. Working closely with its customers, the Group looks forward to supporting the country's strong and sustainable growth coming out of the crisis.
The biggest building materials company in the country, Holcim Philippines operates a unique network of production and distribution assets from Luzon to Mindanao, close to the urban centres where building materials are most needed.
"LafargeHolcim will continue to focus on strengthening its leadership in the Philippines, one of the most high-growth countries in the Asia-Pacific region, building on its brand, its valued customer base and loyal employees," the group statement concluded.
Following the abandoned deal, Holcim Philippines will remain under the control of Union Cement Holdings Corporation (60.55% stake), and Holderfin B.V (18.11%), and Cemco Holdings Inc. (7.8%), the company told the local bourse.
