Philippines' Aboitiz to invest US$531m in cement venture

Aboitiz Equity Ventures says it will invest US$531 million in the cement business after formalising a deal with 6506 Irish cement maker 723 CRH to buy the Philippine assets of 725 Lafarge, reports 6393 Reuters.

The announcement came around two months after cement companies 680 Holcim and Lafarge, which have agreed to merge, said CRH would buy some of their assets for $7.12 billion.

In May, Aboitiz said it was looking to partner with CRH to buy Lafarge's assets in the Philippines as the local power-to-banking conglomerate sought to diversify into infrastructure.

"The agreement (with CRH) will be by way of an agreed investment in holding companies for the purpose of the acquisition of the various Philippine assets and businesses of Lafarge SA, including the cement production and other cement-related businesses and services," Aboitiz told Manila's stock exchange.

The transaction is expected to be completed within the second half of 2015, subject to conditions under the $44 billion merger of Holcim and Lafarge and approval of the global sale of Lafarge assets, it said.