Metro Pacific Tollways Corp. said it temporarily halted merger talks with a unit of San Miguel Corp. for their toll road operations.
“We’ve deferred discussion with them [San Miguel] because MPTC is raising equity money to reduce its debts. Once we achieve that within two to three months, we will resume negotiations,” said MPTC chairman Manuel Pangilinan.
Pangilinan said MPTC is raising anywhere between P30 billion and P40 billion through bank loans, primarily to reduce debt.
“MPIC [Metro Pacific Investments Corp.] is not selling down. It’s new money into tollways,” he said.
Pangilinan said despite the suspension of negotiations, the merger might proceed within the year.
“I think we can do it within the year,” he said.
The toll unit of Metro Pacific Investments Corp. and San Miguel signed in August 2024 a P72-billion deal to construct two expressways south of Metro Manila.
Under the memorandum of agreement, MPTC and SMC will jointly undertake the construction, operation and maintenance of the 87.96-kilometer Cavite-Batangas Expressway and Nasugbu-Bauan Expressway.
The MPTC Group has 240.6 kilometers of operational expressways and 43.1 kilometers under construction, with a total investment of $3.06 billion.
It operates 105 kilometers of North Luzon Expressway, 94 km. of Subic Clark-Tarlac Expressway and 14 km. of Manila-Cavite Expressway. It also operates the 8.5-km. Cebu-Cordova Link Expressway in Cebu.
SMC’s expressways include the Tarlac-Pangasinan-La Union Expressway (TPLEX), the Southern Tagalog Arterial Road (STAR), South Luzon Expressway (SLEX), the Skyway System and the NAIA Expressway (NAIAX).
