The Philippine Competition Commission (PCC) 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, seen as crucial for bolstering the country’s energy supply, is subject to conditions aimed at ensuring fair competition and 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)