Indonesia cement maker snaps up LafargeHolcim unit to bolster market lead
State-owned group to acquire 80.6% stake in PT Holcim Indonesia to extend its dominance in Southeast Asia
Indonesia’s biggest cement maker, Semen Indonesia, is buying the local unit of Swiss rival LafargeHolcim for about $917m, as it seeks to extend its dominance in Southeast Asia’s largest market. Semen Indonesia said it had signed a deal to acquire LafargeHolcim’s 80.6% stake in PT Holcim Indonesia, the third-biggest cement producer in the country. A fully owned subsidiary of the state firm would launch a mandatory offer for the remaining shares owned by public shareholders, it said. “In the competitive environment of national cement industry, the combination between Semen Indonesia and Holcim will be stronger and larger,” said Hendi Prio Santoso, president director of Semen Indonesia. Sources familiar with the matter said Malaysian infrastructure company YTL Corporation and privately owned Chinese firm Hongshi Cement had also been among the final bidders, but the strategic fit with Semen Indonesia helped LafargeHolcim’s Indonesian unit win the auction. The initial round of the auctio...
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