The Philippine Competition Commission (PCC) said Monday it approved the joint acquisition of power facilities and a liquefied natural gas (LNG) terminal by Meralco PowerGen Corp. (MGEN), Therma Natgas Power Inc. (Therma) and San Miguel Global Power Holdings Corp. (San Miguel Power). Therma is a unit of Aboitiz Power Corp.
The transaction, considered crucial for strengthening the country’s energy supply, is subject to conditions designed to ensure fair competition and promote transparency.
Under the deal, MGEN and Therma, through their joint venture Chromite Gas Holdings Inc., will acquire a 67-percent equity interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI) and Ilijan Primeline Industrial Estate Corp.
Meanwhile, MGEN, Therma and San Miguel Power will jointly acquire 100 percent of Linseed Field Corp. (LFC), which operates an LNG terminal in Batangas City.
As a result of these acquisitions, MGEN and Therma, with their 60/40 ownership in Chromite, will control 67 percent of SPPC, EERI and Ilijan Primeline, while San Miguel Power will retain a 33-percent stake in these entities and acquire an equivalent interest in LFC.
The PCC, however, identified potential competition concerns, particularly regarding the risk of coordination in the national power generation market and the possibility of market foreclosure in power supply agreements with distribution utility companies (DUs).
In response, the ultimate parent companies – Pilipinas Enterprise Management Holdings Inc. (PEMHI), Aboitiz & Company Inc. and Top Frontier Investment Holdings Inc.—submitted voluntary commitments on Oct. 18, 2024 to address these concerns.
The PCC formally approved these voluntary commitments on Dec. 20, 2024 after the same were thoroughly reviewed and validated by the PCC, with input from industry stakeholders, the Department of Energy (DOE), and the Energy Regulatory Commission (ERC).
Meralco PowerGen Corp., AboitizPower and San Miguel Global Power Holdings Corp. (SMGP) welcomed the PCC’s decision.
The companies expressed their appreciation for the PCC’s thorough review process and affirmed their shared commitment to advancing a competitive energy market that delivers real benefits to Filipino consumers.
They emphasized their commitment to full compliance with all regulatory requirements and pledged to collaborate closely with stakeholders to align their efforts with the government’s energy goals.
