San Miguel, Northern Cement form JV

San Miguel Corp (SMC) has formed a joint venture with Northern Cement Corp to establish a cement plant in Sison, Pangasinan, Philippines.

The joint venture company will be controlled by SMC via a 70 per cent stake while the remainder of shares is owned by Northern Cement, which is owned by SMC chairman, Eduardo Cojuangco Jr.  Tycoon Ramon Ang is president of both SMC and Northern Cement.

“SMC and Northern Cement Corp have agreed to organize and establish a joint venture corporation for the purpose of undertaking the construction, development and operation of a cement plant in Labayug, Sison, Pangasinan and manufacturing, processing and sale of cement and other products derived therefrom, allied thereto or necessary therefor,” documents submitted to the Philippine Competition Commission (PCC) showed.

The PCC has already approved the transaction. “In view of the recommendation from the mergers & acquisitions office that on the basis of information obtained from the parties and other sources to date, the joint venture between SMC and Northern Cement does not result in a substantial lessening of competition in the relevant market since post acquisition, the market structure remains largely unchanged and the transaction does not appear to change incentives of the parties, the Commission hereby resolves that it will take no further action with respect to the transaction,” said the commission.