Siam Cement Group (SCG) has signed a conditional share purchase agreement with Vietnam's Prime Group Joint Stock Co to acquire majority ownership of that country's largest ceramic tile maker for 7.2 billion baht.
Kan Trakulhoon, SCG's president and chief executive, said the agreement calls for the wholly owned SCG Building Materials to acquire 85% of the Prime Group.
This will raise the parent company's overall competitiveness in Southeast Asia to sustainable levels.
The transaction will be completed early next year.
"As part of our vision of moving forward to become a sustainable business leader in Asean, SCG continues to expand its investment with a strong commitment to enhancing its global competitiveness," said Mr Kan.
He said this agreement gives SCG another production base in another strategic Asean country. It acquired KIA's facilities in Indonesia in mid-2011 and raised its stake in Mariwasa in the Philippines early this year.
The Prime Group, producer of the Prime master brand, operates six tile factories with a capacity of 75 million square metres in Vietnam and commands a 20% domestic market share.
It also owns clay, sand and feldspar mines, which supply the main ingredients for production.
As well, a clay roofing plant has annual capacity of 1.5 million sq m.
Siam Cement Group (SCC) shares closed yesterday on the Stock Exchange of Thailand at 424 baht, unchanged, in trade worth 933 million baht.