Daily Brief Energy/Materials: Eagle Cement Corp, Valero Energy, Vedanta Resources and more

• On the 5 October, San Miguel (SMC PM) announced the acquisition of Eagle Cement (EAGLE PM) at P22.02/share. The deal triggered notification and clearance with the Philippine Competition Commission
• I previously concluded in San Miguel Turns Its Sights To Eagle Cement there was no issue with PCC as the transaction was effectively left pocket, right pocket for SMC/Ramon Ang.
• SMC has now announced that the Offer is not subject to approval from the PCC. No surprise there.

• Valero Energy had a mixed performance in its recent financial results for the quarter as its revenues were significantly above Wall Street expectations.
• The company has a good refining margin supported by continued energy cost advantages, low product inventories, and strong product demand for the U.S. refineries in comparison to the global competitors.
• The refining fundamentals stay strong, with global product supply staying constrained because of the high natural gas prices and capital reductions.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Vedanta Resources
• Yankuang Energy Group