DMCI, one the Philippines' biggest conglomerates with interests in construction, mining, power, real ... [+]
DMCI Holdings, and two other companies controlled by Filipino tycoon Isidro Consunji agreed to buy the Philippine cement business of Mexico’s Cemex for $305.6 million as the property and mining conglomerate seeks to tap the construction boom in the country.
Under the deal, announced this week, Consunji listed flagship DMCI, its shareholder Dacon Corp and unit Semirara Mining and Power will buy Cemex Asia South East Corp, which owns about 89.9% of Manila-listed Cemex Philippines.
“Cement manufacturing will be a good addition to our business portfolio,” Consunji, chairman of DMCI, Dacon and Semirara, said in a statement. “We can leverage our group’s expertise and create new revenue streams from this acquisition.”
DMCI—which started as a construction company founded by Isidro’s father, David Consunji, in 1954—has been diversifying in recent years and currently has interests in real estate, mining, power and water utility.
The Cemex deal is expected to close by the end of the year, subject to regulatory approvals and completion of a mandatory takeover offer for the remaining 10.1% stake in Cemex Philippines.
Upon completion of the transaction, DMCI will own 51% of Cemex Philippines, while Dacon—the Consuji family’s private holding company—will hold 39% and Semirara will own the rest. Cemex Philippines is one of the country’s largest cement makers, producing 5.7 million tons of cement annually, with an additional capacity of 1.5 million tons coming online later this year, DMCI said.
DMCI Holdings is one of the Philippines’ largest conglomerates with a market cap of $2.5 billion. Isidro Consunji and his siblings inherited the company after their father, David (who was a titan of the Philippine construction industry) died in 2017. With a net worth of $2.9 billion, the family ranked No. 8 when the list of the Philippines’ 50 Richest was published last August.
