San Miguel buys 85.7 percent of Holcim Philippines for $2.15 billion

MANILA -- San Miguel Corp said Friday its unit would acquire 85.73 percent of Holcim Philippines for $2.15 billion (P112.4 billion), widening its cement holdings.

First Stronghold Cement Industries Inc, a wholly-owned unit of San Miguel Equity Investments Inc, signed share purchase agreements with companies controlled by Switzerland-based LafargeHolcim Ltd, San Miguel told the stock exchange.

A tender offer will be made for Holcim Philippines' minority shareholders, who hold 14.27 percent of the company. The transaction is subject to the approval of the Philippine Competition Commission, said San Miguel, which also controls Eagle Cement.

"The acquisition of HPI will increase the foothold of the San Miguel Group in the cement business, and will provide the opportunity to implement its plan to expand its cement business nationwide," according to the disclosure.

San Miguel bought out The Netherlands' Holderfin BV, Union Cement Holdings Corp and Cemco Holdings Inc. It will be paid in cash and in full upon closing of the deal.