Metro Pacific Tollways Corp. (MPTC) has announced a temporary pause in its merger negotiations with San Miguel Corp. (SMC), citing the company’s ongoing efforts to raise equity capital to reduce its debts. MPTC Chairman Manuel V. Pangilinan confirmed that the discussions with SMC would be deferred for the time being as MPTC seeks to raise between P30 billion and P40 billion through bank loans to manage its financial obligations.
Pangilinan explained that while MPTC is not selling down any assets, this capital injection will serve to lower the toll operator’s debt burden. “MPIC is not selling down, it’s new money into tollways,” he said, emphasizing the company’s focus on enhancing its financial position before resuming negotiations.
Despite this setback, Pangilinan reassured stakeholders that the merger with San Miguel would proceed within the year, suggesting that negotiations could resume in two to three months once the company has secured the necessary funds. “I think we can do it within the year,” he said.
The merger talks, initially set in motion by a P72-billion deal signed in August 2024, aim to jointly develop and operate the 87.96-kilometer Cavite-Batangas Expressway and Nasugbu-Bauan Expressway, vital projects aimed at improving connectivity in southern Metro Manila. Both MPTC and SMC have extensive toll road networks, with MPTC already operating 240.6 kilometers of expressways and an additional 43.1 kilometers under construction. SMC, on the other hand, manages key infrastructure including the Tarlac-Pangasinan-La Union Expressway (TPLEX) and the Skyway System.
The delay in talks raises questions about potential shifts in the region’s infrastructure development timeline, though experts suggest the impact on commuters will be limited in the short term, given the phased nature of the projects. Still, the strategic importance of these tollways, once completed, cannot be overstated in easing congestion and improving traffic flow in key areas south of Metro Manila.
