Billionaire Ramon Ang’s San Miguel Offers $1.6 Billion To Takeover Cement Maker Amid Philippine Construction Boom

The San Miguel Corporation approved a deal to buy 80% of Eagle Cement the Philippines’ biggest independent cement producer, for 22.05 pesos per share. This was revealed in a regulatory filing by San Miguel President and CEO Ramon Ang on Tuesday night. Additionally, CEO Ang did not attend board meeting discussing the deal as he is also chairman and president of Eagle Cement.
San Miguel has been making infrastructure deals this year in order to get ahead of planned government contracts in other areas. Last month, it won projects valued at 1 million pesos each (53 million) for airport terminals and tollways.
Amid skyrocketing demand, Eagle Cement shares have soared. The company’s profits nearly doubled in 2021 to reach 6 billion pesos, well past pre-pandemic levels. Sales rose 54% to 21.4 billion pesos as well; this level of growth was spurred by the construction industry and Eagle Cement’s management team. The latest annual report from CEO Evelyn Ang said “dramatic improvements in the economic backdrop” caused the company’s recovery. She also highlighted that the company is in a healthy financial position going into 2022 thanks to strong business performance, which will allow them to invest in areas needed for growth such as their assets and pursuing strategic opportunities.