Saturday 24 September 2016

CRH teams up with Aboitiz Equity to buy Lafarge's Philippine cement business

Published 15/05/2015 | 08:55

Albert Manifold, chief executive officer of CRH Plc, speaks during a Bloomberg Television interview in London, U.K., on Tuesday, Aug. 19, 2014. CRH, the biggest company on the benchmark Irish stock index, said it may spend as much as 1.5 billion euros ($2 billion) on acquisitions over the next 18 months, after the building-materials supplier reported a 27 percent increase in first-half earnings. Photographer: Chris Ratcliffe/Bloomberg
Albert Manifold, chief executive officer of CRH Plc, speaks during a Bloomberg Television interview in London, U.K., on Tuesday, Aug. 19, 2014. CRH, the biggest company on the benchmark Irish stock index, said it may spend as much as 1.5 billion euros ($2 billion) on acquisitions over the next 18 months, after the building-materials supplier reported a 27 percent increase in first-half earnings. Photographer: Chris Ratcliffe/Bloomberg

Building supplies group CRH is to partner with Aboitiz Equity Ventures to buy the Philippines cement business of France's Lafarge, seeking to diversify into infrastructure.

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EU antitrust regulators last month cleared CRH's planned €6.5bn purchase of a number of mostly European assets from Lafarge and Holcim.

Aboitiz, a large Philippines' conglomerate with interests in power generation and banking, said the potential acquisition would involve four cement manufacturing plants on the main island of Luzon, a plant in central Cebu province and limestone quarries.

Financial terms were not disclosed.

"Venturing into infrastructure meets our growth criteria," Aboitiz Equity CEO Erramon Aboitiz said in a statement.

"We are very optimistic of the potential gains this new core business will bring to the group amid the huge demand for infrastructure in the Philippines."

Lafarge and Switzerland's Holcim Ltd are disposing of assets to win regulatory approval for their planned merger to create the world's biggest cement firm.

A deal would be subject to the completion of the merger and approval by the boards of both Aboitiz and CRH, the Philippine company said.

Reuters

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