MPIC, SMC toll merger on hold

Metro Pacific Investments Corp. (MPIC) has suspended negotiations with San Miguel Corp. (SMC) regarding their planned tollway merger as the MVP conglomerate focuses on raising fresh equity.

Despite the temporary pause, MPIC chairperson and president Manuel V. Pangilinan said the merger remains on track and could still be completed within the year.

“We deferred discussion with them because MPTC (Metro Pacific Tollways Corp.) is raising money, equity money to reduce debts. We have significant debts. So once we’ve achieved that, the raise will be in the next two to three months, then we can resume discussion,” Pangilinan said in an interview with reporters last week.

MPIC aims to secure P30 billion to P40 billion in fresh funds primarily to reduce debt. “It’s mainly for reducing debts. So it’s all new money so MPIC is not selling down,” he said.

Merger will ease congestion

MPIC and SMC agreed to merge their toll road businesses to boost efficiency and ease congestion. The Pangilinan group wanted a 50-50 split despite speculation that Ramon S. Ang’s group prefers a 90-10 split.

MPTC holds the concession rights for the Cavite-Laguna Expressway, Cavite Expressway, North Luzon Expressway, NLEX Connector Road, Subic-Clark-Tarlac Expressway and Cebu-Cordova Link Expressway in Cebu.

Through Metro Pacific Tollways Asia, it also has a significant stake in PT Nusantara Infrastructure in Indonesia and CII Bridges & Roads of Vietnam.

Meanwhile, SMC, through SMC Infrastructure, operates the Tarlac-Pangasinan-La Union Expressway, the Southern Tagalog Arterial Road, the South Luzon Expressway, the Skyway System, and the NAIA Expressway.

MPIC and SMC are not new to partnerships. The two had previously signed a P72-billion deal to build the Cavite-Batangas Expressway and the Nasugbu-Bauan Expressway.

In a separate development, MPTC is now led by Jose Ma. Lim as its new president and CEO, replacing Arrey Perez after a three-month term. Lim previously served as MPTC board of director and MPIC president and CEO from 2006 to 2022.