The Consunji Group said Tuesday it completed its $272-million acquisition of Cemex Holdings Philippines (CHP).
Consunji subsidiaries DMCI Holdings Inc., Semirara Mining and Power Corp. and Dacon Corp. finalized the acquisition of a 90-percent interest in Cemex Asian South East Corp. (CASEC), which controls a majority interest in CHP.
The deal marks Consunji group’s entry in the cement manufacturing industry, which offers synergies to existing businesses including construction, real estate, coal mining and power generation.
“We are excited to welcome CEMEX Holdings Philippines into the DMCI group,” said DMCI, SCC and CHP chairman of the board Isidro Consunji.
“This acquisition aligns with our core expertise in engineering and construction and dedication to contributing to the infrastructure development of the Philippines,” he said.
To ensure a seamless transition, the group appointed DMCI board advisor, executive vice president and chief finance officer Herbert Consunji as president and chief executive officer of CHP.
He will lead turnaround efforts to further streamline operations and unlock synergies.
CHP widened its net loss to P2.87 billion in the first nine months of the year from a loss of P1,24 billion recorded in the same period last year. The net loss for the first nine months of 2024 was mainly a result of lower cement prices, higher financial expenses, and higher income tax expenses.
The Consunji Group said, however, it expects CHP to turn round by next year on the back of better market conditions and efficient operational synergies.
“Our priorities are to enhance the logistics network, optimize the product mix, manage production and operating costs, and leverage on potential operating synergies within the DMCI ecosystem,” said Herbert Consunji.
CHP, which wholly owns APO Cement Corp. and Solid Cement Corp. has a combined annual production capacity of 5.7 million tons.
This is expected to grow to 7.2 million tons by early 2025 upon the completion of the expansion plant at Solid Cement Corp. in Rizal.
DMCI secured a 51-percent effective stake in CHP, while SCC and Dacon accounted for 10 percent and about 29 percent, respectively.
