By Leslie D. Venzon
MANILA, May 15 (PNA) — Philippine conglomerate Aboitiz Equity Ventures, Inc. (AEV) is in talks with a global building materials company for possible investments in the acquisition of five cement manufacturing plants as it ventures into infrastructure.
AEV announced Friday the signing of an exclusivity agreement with a non-binding memorandum of understanding (MoU) with CRH plc (CRH) to potentially invest with CRH in the acquisition of four Luzon-based cement manufacturing plants located in Bulacan, Norzagaray, Teresa, and Batangas; a plant in Danao City, Cebu, and associated limestone quarries.
“We are very pleased with the prospect of entering this new business, which is a solid opportunity that will support our thrust to develop infrastructure as one of our core businesses and create a more diversified income source for AEV,” said Erramon I. Aboitiz, AEV President and chief executive.
AEV told the local bourse that the conclusion of any transaction would be subject to the successful completion of the merger between Lafarge S.A. and Holcim Ltd and also approval by the boards of both CRH and AEV.
This follows CRH’s announcement earlier this year of its commitment to acquire the Philippine cement operations of Lafarge Holdings (Philippines), Inc.
The majority of the shares of Lafarge Republic, Inc. and the shares in Luzon Continental Land Corporation and Lafarge Cement Services Philippines, Inc. together constitute the majority of Lafarge’s Philippine cement operations.
Earlier this year, AEV announced it was moving into infrastructure, the fifth leg of the company’s core businesses after power, banking, food and land.
“Venturing into infrastructure meets our growth criteria. 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,” Aboitiz said.
With operations in 34 countries worldwide, CRH plc is a global leader in the manufacture and supply of a diverse range of building materials and products for the modern built environment. (PNA)