The family of Philippine billionaire Isidro Consunji is set to invest ₱10 billion (approximately $177 million) into their flagship company, DMCI Holdings, to support the acquisition of Cemex Holdings Philippines, a local cement unit of Mexico’s Cemex. This move is part of DMCI’s strategy to expand its portfolio and strengthen its foothold in the construction and infrastructure sectors.
The capital infusion will facilitate the purchase of Cemex Holdings Philippines, the country’s fourth-largest cement manufacturer. This acquisition represents DMCI’s first major investment in nearly a decade, following a period focused on organic growth. The last significant acquisition was in 2014, when DMCI acquired nickel assets.
Isidro Consunji, chairman and CEO of DMCI Holdings, stated that the acquisition is aligned with the company’s objective to enhance its internal ecosystem and gain a competitive edge in the construction materials market. By producing its own cement, DMCI aims to meet the growing demand for construction materials fueled by government infrastructure projects and increased private sector development.
Despite a relatively subdued cement market, Consunji considers the purchase price attractive and anticipates growth in infrastructure spending, which could make the investment profitable. The acquisition is expected to create synergies with DMCI’s existing operations, particularly in construction and real estate development.
DMCI Holdings plans to keep Cemex’s publicly listed status to maintain financial flexibility and market credibility. The company also intends to issue a mandatory tender offer to minority shareholders of Cemex Holdings within the year, reinforcing its commitment to the acquisition.
With the acquisition of Cemex Holdings Philippines, DMCI is strategically positioned to capitalize on the increasing demand for cement and construction materials, setting the stage for future growth in the Philippine infrastructure sector.
