San Miguel Corp. said Monday it dropped the plan to acquire the controlling stake in cement manufacturer Holcim Philippines Inc. after the agreement lapsed without obtaining regulatory approval.
San Miguel said in a disclosure to the stock exchange unit First Stronghold Cement Industries Inc. would no longer proceed with the planned acquisition of 5.531 billion common shares, equivalent to 85.73-percent stake in Holcim Philippines, for more than $2 billion after the agreement signed in May 2019 had lapsed.
San Miguel said the completion of the acquisition required the approval of the Philippine Competition Commission which the two parties involved in the transaction were not able to achieve.
“In view of the above, the proposed acquisition by FSCII of the 85.73 percent of HPI shall no longer proceed,” San Miguel said.
“Accordingly, FSCII withdraws the launch of the tender offer of the HPI shares held by its minority shareholders which was made by the company on Sept. 23, 2019,” it said.
PCC, the government's anti-trust body, said in January that the San Miguel-Holcim Philippines deal would result in higher cement prices and lessen competition in some areas in Luzon.