Concepcion Industrial to enter elevator business

Posted at 03/20/14 5:01 PM

MANILA, Philippines – Concepcion Industrial Corp. is looking to expand its business with the acquisition of shares of elevator and escalator maker Otis E&M Company.

In a disclosure to the Philippine Stock Exchange (PSE), Concepcion Industrial said it gave the go-signal for subsidiary Concepcion-Carrier Air Conditioning Co (CCAC) to enter into agreements for the acquisition of shares in the manufacturing firm.

Concepcion Industrial said the agreement is “subject to the completion of due diligence exercise and final agreement between CCAC and United Technologies Corporation-Asia Pte Ltd. on the terms and conditions of the said transaction.”

"The acquisition of Otis will strengthen CIC's building and industrial solutions segment, creating added synergies and a new strategic growth platform aligned with a global brand and building solution trends," the air condition and refrigeration company said.

CCAC, a joint venture between Concepcion Industrial and Carrier Air Conditioning Philippines Inc., will also amend its Articles of Partnership and Joint Venture Agreement to include the sale and servicing of elevators, escalators, moving walkways and shuttle systems and the parts and components.

Otis, established in 1935, is one of the leading providers of elevators and escalators in the country.

Concepcion Industrial made its debut on the PSE late last year under the ticker symbol “CIC”.