Consunji Group finalizes acquisition of majority stake in CEMEX Holdings Philippines
The Consunji Group, through its diversified engineering conglomerate DMCI Holdings, Inc. (PSE: DMC), Semirara Mining and Power Corporation (PSE: SCC) and Dacon Corporation, announced today that it has successfully completed its acquisition of Cemex Asian South East Corporation (CASEC) with a purchase price of $272 million.
The deal secures nearly 90% ownership in CEMEX Holdings Philippines Inc. (PSE: CHP), marking the group’s strategic expansion into the cement manufacturing sector, with the completion of the transaction taking effect on December 2, 2024.
CHP, which wholly owns APO Cement Corporation and Solid Cement Corporation, 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 Corporation.
“We are excited to welcome CEMEX Holdings Philippines into the DMCI group,” said DMC, SCC and CHP Chairman of the Board Isidro A. Consunji. “This acquisition aligns with our core expertise in engineering and construction and dedication to contributing to the infrastructure development of the Philippines.”
To ensure a seamless transition, DMC Board Advisor, Executive Vice President and Chief Finance Officer, Herbert M. Consunji, has been appointed as 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 Herbert M. Consunji.
The acquisition is anticipated to strengthen the DMCI ecosystem, with captured markets for coal, long-term contracted power capacity, fly ash, and cement products.
At the financial close, DMC secured a 51% effective stake in CHP, while SCC and Dacon Corporation accounted for 10% and approximately 29%, respectively.
Published by DMCI’s Holdings, Inc.