Thee conglomerates welcomed the Philippine Competition Commission’s (PCC) decision allowing them to proceed with their joint acquisition of two gas-fired power plants and a liquefied natural gas (LNG) terminal as they expect closing the transaction next month.
Meralco PowerGen Corp. president Emmanuel Rubio said that following the PCC decision, they“will be working on conditions precedent to closing.”
“We are looking at closing by end of January,” Rubio said.
MGen, the power arm of Manila Electric Co., Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. issued a joint statement on the PCC decision.
“This landmark transaction is expected to boost the country’s energy security and infrastructure,” the parties said.
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 also expressed their commitment to full compliance with regulatory requirements and pledged to collaborate closely with stakeholders to align their efforts with the government’s energy goals.
“This partnership highlights the shared vision of MGEN, AboitizPower and SMGP to address the growing energy needs of the Philippines while promoting transparency, fairness, and long-term sustainability in the energy sector,” they said.
The PCC approved on Monday the joint acquisition of power facilities and a LNG terminal by MGen, Therma Natgas Power Inc. of Aboitiz Power and San Miguel Power, subject to certain conditions.
The transaction involves MGen and Therma, through their joint venture Chromite Gas Holdings Inc. (Chromite), acquiring a 67-percent equity interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI) and Ilijan Primeline Industrial Estate Corp.
MGen and Therma, through Chromite, along with San Miguel Power, will jointly acquire 100 percent of Linseed Field Corp. (LFC), which operates the LNG terminal in Batangas City.
MGen and Therma, through their 60/40 ownership of Chromite, will control 67 percent of SPPC, EERI and Ilijan Primeline, while San Miguel Power retains a 33-percent stake in these three entities and gains a corresponding interest in LFC as a result of these acquisitions.
The PCC said that while the transaction supports the country’s energy security, the imposed conditions are vital to maintaining a competitive market.
Key safeguards include PCC oversight of the competitive selection process (CSP) to ensure power supply agreements are awarded through a transparent and competitive bidding process. This oversight aims to prevent collusion or unfair practices.
The PCC said the acquired companies should also operate independently of their parent companies, with strict measures to separate IT systems, offices and management to prevent coordination or undue influence. Boards of directors will include independent members, and internal trading units will operate independently of affiliates.
