The Consunji Group wants to start strong with its P17.6 billion takeover of Cemex Philippines, as it decides to keep the APO and Rizal cement brands, which have more than a century of industry presence.
Ahead of the deal’s expected conclusion before the end of 2024, Cemex Philippines announced the purchase of trademarks including “APO Cement,” “Rizal,” and “Island” from the parent company for nearly P740 million or $12.55 million, a stock exchange filing on Friday showed.
Big picture
Rather than beginning anew, the Consunjis will rely on the company’s well-known brands to maintain and expand their market position.
It is important for the group to make a strong entry into the unfamiliar cement business, with a target to reverse Cemex Philippines’ losses by 2025.
APO Cement, the country’s first cement plant, was established in 1921 while Rizal Cement started in 1930. The companies were acquired by Cemex Philippines’ parent group when it entered the Philippines in the late 1990s.
Merger process ongoing
Earlier this year, Consunji-led firms DMCI Holdings, Semirara Mining and Power Corp., and Dacon Corp. announced the purchase of Cemex Philippines’ parent firm for $305.6 million.
This acquisition will give the Consunji Group an 89.86 percent stake in Cemex Philippines.
At last month’s stockholders’ meeting, Consunji announced plans for a minority buyout offer and to maintain the company’s public listing on the Philippine Stock Exchange.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
