Davao-based businessman Dennis Uy has completed a 100-percent buyout of Philippine FamilyMart CVS Inc. (PFM), operator of the chain of 67 Family Mart convenience stores in the Philippines, from the Ayala and Tantoco groups and their Japanese partners.
While the foreign partners, FamilyMart Co. Ltd. and Itochu Corp. likewise unloaded their interest in PFM in favor of Uy-led petroleum distributor Phoenix Petroleum. An exclusive area franchise deal for FamilyMart had been granted to PFM under the management of Phoenix Petroleum, the Uy-led oil firm said in a separate disclosure.
Phoenix Petroleum’s acquisition of PFM is seen to complement its fuel retailing business, which has 518 stations nationwide. The leading independent oil company also has a wide network of commercial and industrial clients in the country.
Prior to their divestment, Ayala Land Inc. (through ALI Capital) and the Tantocos’ SSI Group owned 60 percent of PFM while FamilyMart Co. and Itochu respectively owned 37.6 percent and 2.4 percent.
The deal was cleared by the Philippine Competition Commission on Jan. 3. The antitrust body is mandated by law to review mergers and acquisitions valued at P1 billion and above, to ensure that these deals will not prejudice the interest of the consumers.
Phoenix Petroleum’s acquisition of PFM continues the latter’s bid to gain market share in the highly-competitive local convenience store business. In the last six years, new brands have entered the local market to challenge the two leading players 7-Eleven and Ministop, run by Philippine Seven Corp. and Robinsons Retail Holdings Inc., respectively. —DORIS DUMLAO-ABADILLA