Following the announcement that CRH would purchase assets from Lafarge and Holcim, Aboitiz Equity Ventures, Inc. (AEV) has announced the signing of an Exclusivity Agreement with a non-binding MoU with CRH for the acquisition of the majority of the shares of Lafarge Republic, Inc. and the shares in Luzon Continental Land Corporation and Lafarge Cement Services Philippines, Inc. Together, these entities make up the majority of Lafarge’s Philippine cement operations.
AEV is listed on the Philippine Stock Exchange and is the public holding company of the Aboitiz Group, with major investments in power, banking, food, land and infrastructure.
Erramon I. Aboitiz, AEV President and Chief Executive Officer, said, “AEV and CRH are in exclusive negotiations whereby AEV may potentially invest with CRH in the acquisition of four Luzon-based cement manufacturing plants located in Bulacan, Norzagaray, Teresa, and Batangas; a plant in Danao City, Cebu, and associated limestone quarries. We are very pleased with the prospect of entering this new business, which is a solid opportunity that will support our thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV. Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country’s need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector.”
Conclusion of any transaction would be subject to the successful completion of the merger between Lafarge S.A. and Holcim Ltd, and also approval by the boards of both CRH and AEV.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/15052015/potential-partner-for-crh-in-philippines-cement-acquisitions-842/