LafargeHolcim has determined to keep its $2.15 billion Philippines enterprise after a contract to sell the operation failed, the world’s largest cement maker said Monday.
The contract to sell four cement plants and one grinding plant to San Miguel Corporation plunged aside after the Philippines Competition Authority (PCC) didn’t give approval in time.
The Swiss firm, which last month stated it expects a speedy restoration for the construction sector when coronavirus restrictions are lifted, mentioned it was properly positioned to grow in the Philippines, where it had sales of nearly 650 million Swiss francs ($668 million) in 2019.
It had ample liquidity to cover its obligations with eight billion francs in cash and unused committed credit strains, it added.
Analysts weren’t surprised by the failure of the deal after the PCC had raised considerations it could result in elevated market power and a possible monopoly for San Miguel.
LafargeHolcim declared the sale of its entire 85.7% stake to industrial group San Miguel in Might 2019 and was anticipated to complete the transaction by the end of last year.
LafargeHolcim has been offloading assets to pay down debt and wanted to exit what it has previously referred to as the hyper-competitive South-East Asia market.
The Swiss firm has additionally quit Indonesia, Malaysia and Singapore, where its businesses together with the Philippines operation have been valued at $4.9 billion.
LafargeHolcim mentioned three of its four factories in the Philippines that had been shut down due to the coronavirus disaster had now resumed operations.