Phoenix buys Petronas’ PH unit
Phoenix Petroleum Philippines Inc. is paving the way for a bigger presence in the domestic nonfuel business with the buyout of the local unit of Malaysia’s Petronas group.
Phoenix entered into a memorandum of understanding with PDB Netherlands BV, on the acquisition of the latter’s liquefied petroleum gas business through Petronas Dagangan Bhd. (PDB), which is listed at Bursa Malaysia and has operations in southern Philippines.
The plan relates to a 100-percent interest in Petronas Energy Philippines Inc. (“PEPI”) and its affiliate Duta Inc., and will have to secure approval from the Philippine Competition Commission.
“We are very excited about this asset not only because it represents a new product that Phoenix can offer but also because we know that it has been operated in line with the operating standard of Petronas, a Fortune 500 company,” Phoenix president and chief executive Dennis Uy said in a statement.
Uy said Phoenix aimed to build significant presence in the nonfuel petroleum markets which currently account for about one percent of the company’s business.
PEPI, already operating in the Philippines for over 20 years, sells LPG for household and commercial use as well as in bulk for industrial use. It also sells autogas for vehicles.
PEPI generates most of its sales in Visayas and Mindanao where the market is “under-penetrated,” and where consumers have increasing disposable incomes prospects for LPG demand is attractive.
“This (planned acquisition) will allow Phoenix to further grow this business in its home market, where there is room for profitable industry expansion and less competition (versus Luzon),” Uy said.
“The company views the LPG business as a strong strategic fit as it broadens its product portfolio and petroleum presence with a particular emphasis in Visayas and Mindanao,” he added. —RONNEL W. DOMINGO
