‘Holcim Philippines can survive pandemic’
Cement manufacturer Holcim Philippines Inc. expressed confidence that it can overcome the economic challenges caused by the pandemic and hinted that it is no longer for sale after its deal with San miguel Corp. failed to secure regulatory approvals.
Holcim Philippines Chairman Tomas Alcantara said the company was able to grow its earnings last
year on higher efficiencies and improved costs across all areas of the business.
“This was the result of continuing improvement initiatives that make our performance sustainable and our company more resilient and adaptable to market developments,” Alcantara said.
“These achievements motivate us to do even better. We are committed to make sure Holcim Philippines continues to be an even stronger partner for the country’s progress.”
Holcim Philippines President and CEO John Stull said Lafargeholcim will remain the majority shareholder of the company after it failed to secure the nod of the Philippine Competition Commission for the deal with San Miguel.
“We are very pleased to know that we are no longer in the sales process, and we are very excited about the future working with one the largest and most successful companies in the building materials sector and we are happy to be part of the group,” Stull said during the company’s annual stockholders' meeting.
“Being a member of one of the world’s the leading building materials providers [the Lafargeholcim Group] is a source of strength during these times. The group has been supporting partners all over the world to recover better, with sustainability at the core of its efforts. Together with our partners, we too are determined to help move the country forward.”
San Miguel in May withdrew its $2.15-billion offer to buy Holcim
Philippines after it failed to secure the approval of the local antitrust body.
San Miguel’s unit, First Stronghold Cement Industries Inc., was supposed to buy some 5.53 billion shares of the cement firm, or about 85.73 percent.
For the first three months of the year, the company’s income fell 29 percent to P501.54 million, from last year’s P703.86 million.
Sales revenues in the first quarter reached P7.3 billion, a 10-percent decline from last year’s P8.1 billion amid softer prices and lower volumes particularly towards the end of the quarter.