THE Consunji Group said it has completed the acquisitions of a controlling stake in cement firm Cemex Holdings Philippines Inc. (CHP).
The group acquired the fourth largest cement manufacturing firm in the Philippines through its listed holding firm DMCI Holdings Inc., listed unit Semirara Mining and Power Corp. and umbrella corporation Dacon Corp.
The group acquired the controlling stake from Cemex Asian South East Corp. with a purchase price of $272 million.
At the financial close, DMCI secured a 51 percent effective stake, while Semirara and Dacon accounted for 10 percent and approximately 29 percent, respectively.
“The deal secures nearly 90 percent ownership in CEMEX Holdings Philippines Inc., marking the group’s strategic expansion into the cement manufacturing sector, with the completion of the transaction taking effect on Dec. 2, 2024,” the group said in a statement.
To ensure a seamless transition, Herbert Consunji, DMCI board advisor, executive vice president and chief finance officer, was appointed president and chief executive officer of CHP.
He will lead 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 on potential operating synergies within the DMCI ecosystem,” said Consunji.
CHP, which wholly owns APO Cement Corp. and Solid Cement Corp., currently has a combined annual production capacity of 5.7 million tons. This capacity is expected to grow to 7.2 million tons by early 2025 upon the completion of the expansion plant at Solid Cement.
The acquisition is seen to strengthen the DMCI ecosystem, with captured markets for coal, long-term contracted power capacity, fly ash and cement products. “We are excited to welcome Cemex Holdings Philippines 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,” said Isidro Consunji, DMCI, Semirara and Cemex chairman of the board.
