LUCIO CO-owned Cosco Capital Inc. is expanding into the liquefied petroleum gas (LPG) market with its takeover of LPG distributor Liquigaz Philippines Inc.
In a disclosure to the stock exchange, Cosco said on Monday that it has acquired Canaria Holdings Corp.’s 100-percent stake in Liquigaz.
Canaria Holdings is 90-percent owned by Cosco and 10-percent held by PR Gaz, Inc.
The Liquigaz takeover follows Cosco’s acquisition of school and office supplies retailer Office Warehouse Inc. in May as Cosco diversifies its business portfolio.
Cosco said the acquisition of Liquigaz will provide the company an entry point in the downstream LPG retail business.
Liquigaz is the second largest wholesale supplier of LPG in the country with a 30 percent share of the market. It is the biggest LPG distributor in Luzon.
“Over 60 percent of the country’s total annual LPG importation is unloaded, stored and sold from Liquigaz’s 12,500 metric ton-capacity storage tanks in Mariveles, Bataan, the largest of such facility in the Philippines. It is the only supplier capable of receiving both refrigerated and pressurized LPG cargo,” Cosco said.
Some 85 percent of Liquigaz’s wholesale LPG supply goes to refillers and distributors, while the remaining 15 percent is sold to commercial end-users such as restaurants, hotels, fast food outlets, hospitals, supermarkets and auto gas stations
Cosco targets getting into the LPG retail business from the present wholesale distribution through mergers and acquisitions of existing LPG refillers and retailers or via the establishment of its own LPG refilling and retailing network.