News
Source: https://www.independent.ie/business/irish/lafargeholcim-eyes-sale-of-philippines-cement-business-37750764.html
Ireland's
CRH entered the Philippines in 2015 through its €6.5 billion acquisition of
assets globally from Holcim and Lafarge when they merged to form Europe's
biggest cement maker.
Building
materials giant LafargeHolcim is exploring options for its business in the
Philippines, including a potential sale, as the company seeks to further reduce
debt by selling non-core assets, according to people with knowledge of the
matter.
LafargeHolcim's
Philippines divestment is being considered as part of a broader strategic
review of the company's Southeast Asia operations following the sale of its
Indonesian business, sources said.
However,
LafargeHolcim may keep the business if it decides it can't fetch an attractive
enough price, the same sources claimed.
A
spokesman for the company declined to comment.
The
seller may seek to value the Philippines assets at around $2.5bn, though some
suitors have indicated they think the business is worth less, the people said.
A
rival seeking to purchase all of LafargeHolcim's plants in the country may face
antitrust issues, which could make it more difficult to find a single buyer,
they said.
If
the business is sold, the next disposal candidate would be Malaysia.
LafargeHolcim
has been divesting assets as part of a five-year turnaround plan, announcing in
November that it will sell its Indonesian unit for $1.75bn including debt to PT
Semen Indonesia.
Chief
Executive Officer Jan Jenisch admitted last May that the company's Southeast
Asia business has been "a bit more challenging" amid price pressure
in markets such as the Philippines and Malaysia.
LafargeHolcim
also revealed in November it has one or two more disposals coming up after the
Indonesia sale. The company's cost-cutting plan is aimed at regaining firepower
to make acquisitions, Jenisch told investors at the time.
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