Phoenix Petroleum Philippines Inc. is acquiring LPG seller Petronas Energy Philippines Inc. (PEPI), a subsidiary of Malaysian firm Petronas Dagangan Berhad (PDB), with a planned 100% shares as part of its aggressive network expansion in the next three years.
In a disclosure to the stock exchange, the acquisition will include the retailing of lubes and liquefied petroleum gas (LPG) products from PEPI as per the board approved memorandum of understanding (MoU) with PDB (Netherlands) B.V.
PEPI has been in the retail business for 20 years, selling bulks of LPG in cylinders for industrial, household and commercial use, as well as environmental alternative fuels like autogas for vehicles.
Phoenix Petroleum is also obtaining Petronas affiliate Duta, Inc., which manages and holds its various land parcels used by PEPI.
When asked of the total purchase of the deal, the Davao-based oil firm said the acquisition is still subject to the approval of the Philippine Competition Commission (PCC).
“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. PEPI’s level of excellence, professionalism, and adherence to the highest of global standards is impressive,” president and chief executive officer Dennis Uy said, stressing that the proposed acquisition is in line with the company’s growth plans and product portfolio.
With plans to meet further demands of its home markets in Visayas and Mindanao, Phoenix Petroleum said that the move will generate more fuel sales and less competition against Luzon.
Of the 10 billion proposed budget for 2017, Uy and vice president of external affairs Raymond Zorilla said that the company will allot P6-8 billion for future acquisitions of other oil firms or related trade in the next three years on top of its P2 billion short-term commercial papers (STCPs) issued this year.
Phoenix Petroleum is the Philippines’ leading independent and fastest-growing oil company, engaged in trading and marketing of refined petroleum products and lubricants, oil depot and storage operations, hauling and into-plane services.