DIVERSIFIED conglomerate San Miguel Corp. (SMC), the country’s largest corporation in terms of revenue and one of Southeast Asia’s largest publicly listed companies, is in talks to acquire a foreign company that would double its asset size if the deal goes through.
SMC president and chief operating officer (COO) Ramon S. Ang said he is considering buying what he described as a “huge company” abroad that would double the size of SMC.
He said negotiations for such an acquisition are under way.
“Actually, I am looking at acquiring a big company and I’m about to convince it. This would double the size of San Miguel all of a sudden,” Ang told reporters.
He described the planned acquisition as akin to a merger with a company that is a little bit bigger or about the size of San Miguel.
The foreign company, Ang said, has huge profits with pre-cash flow of $3 billion. Beyond that, Ang declined to give more details.
Ang said such a move would definitely allow SMC to hit a trillion pesos in revenue in succeeding years.
“It will be easier for SMC to hit a trillion if we acquire it,” he said.
In case the acquisition falls through, Ang expressed confidence that SMC would still hit a trillion-peso revenue next year.
“When we consolidate all our businesses, maybe we’ll hit it next year,” he said.
SMC has highly integrated operations in beverages, food, packaging, fuel and oil, power and infrastructure.
In recent years, it has added to its portfolio additional market-leading businesses and investments in the country’s fuel and oil, power, infrastructure, telecommunications and banking industries.
San Miguel is now a majority owner of Petron Corporation, a major player in the Philippine and Malaysian downstream oil markets.
It has also built a power company with a full spectrum of three Independent Power Producer Agreements and also runs a cogeneration power plant with a total capacity of 2,685 megawatts (MW).
San Miguel has also invested in the infrastructure business. Its current portfolio includes the Tarlac-Pangasinan-La Union Expressway, South Luzon Expressway, Skyway 1, 2 and 3, Star Tollway, NAIA Expressway, Boracay Airport and the MRT7 [Metro Railway Transit 7] project.
The company’s manufacturing and trading operations are mostly located in the Philippines but also extend to Hong Kong, China, Indonesia, Vietnam, Thailand, Malaysia and Australia. SMC is a subsidiary of Top Frontier Investment Holdings, Inc.