Manila–(PHStocks)–Aboitiz Equity Ventures Inc. (PSE: AEV) is pleased to announce the signing of an exclusivity agreement with a non-binding Memorandum of Understanding (MoU) with CRH plc to potentially invest with CRH in the acquisition of the majority of the shares of Lafarge Republic Inc. (PSE: LRI) and the shares in Luzon Continental Land Corporation and Lafarge Cement Services Philippines Inc., which together constitute the majority of Lafarge’s Philippine cement operations.
This follows CRH’s announcement earlier this year of its commitment to acquire the Philippine cement operations of Lafarge Holdings (Philippines) Inc.
Erramon I. Aboitiz, AEV President and Chief Executive Officer, said, “AEV and CRH are in exclusive negotiations whereby AEV may 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. Together with CRH, we aim to take an already successful Philippine cement operations and management team to greater heights, as the country’s need for quality cement will continue to grow in line with its resurgent economy and infrastructure sector.”
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 noted.
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.