The Philippine Competition Commission (PCC) has approved a landmark partnership between Meralco PowerGen Corp. (MGen), Therma Natgas Power Inc. (Therma) of the Aboitiz Group, and San Miguel Global Power Holdings Corp. (San Miguel Power), aimed at enhancing the country’s energy security.
The transaction, which involves the joint acquisition of power assets and an LNG terminal, is expected to strengthen the nation’s energy supply. It includes MGen and Therma, through their joint venture Chromite Gas Holdings Inc., acquiring a 67 percent stake in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (Ilijan), alongside a full 100 percent acquisition of Linseed Field Corp. (LFC), which operates an LNG terminal in Batangas City.
While the deal is seen as a boost to energy security, the PCC emphasized the need for stringent safeguards to ensure fair competition. These include oversight of the power supply bidding process, mandatory operational independence for the acquired entities, and rigorous monitoring of compliance with competition laws. Additionally, the transaction is subject to a five-year compliance period, with penalties for non-compliance.
The involved companies expressed their commitment to regulatory compliance and collaboration with stakeholders to meet the Philippines’ growing energy demands, promoting transparency and sustainability in the sector.
