BIZ BUZZ: Aboitiz weighs Republic Cement partner’s exit plan

Dublin-based CRH Plc has indicated fresh plans to exit Republic Cement. Aboitiz Group, its local partner, has the right of first refusal but isn’t scrambling to exercise this.

“Our partner is selling,” a top official of Aboitiz Group confirmed to Biz Buzz. It’s all part of CRH’s global restructuring, with the Philippines among the last emerging markets in its divestment plan, the source explained.

But are they keen on buying the stake? “It depends on the price,” the Aboitiz source said.

For now, however, the source said the priority was to make the conglomerate more compact instead of adding more to its plate. Just last year, Aboitiz Equity Ventures Inc. completed its acquisition of Coca-Cola Beverages Philippines Inc.

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Unfortunately for CRH, it’s not a seller’s market. As Aboitiz isn’t rushing to buy out CRH, the latter needs to explore other options.