Fortune Cement Corp said its board of directors has approved the company’s merger with another Philippine cement maker, Continental Operating Corp, with Fortune Cement as the surviving entity.
The merger will improve cost efficiency and widen the two companies’ market reach on the main Philippine island of Luzon, Fortune Cement said in disclosure to the stock exchange. Continental is a unit of another listed company, Republic Cement Corp.
The merger will involve the issuance of about 1.12bn common shares of Fortune Cement to Republic Cement in exchange for all the issued and outstanding shares of Continental.
