The power arm of diversified conglomerate San Miguel Corp. has obtained the approval from the Philippine Competition Commission to acquire the 630-megawatt Masinloc power plant in Zambales.
In approving it, PCC said the transaction does not result in a substantial lessening of competition in the relevant markets as there remains sufficient post-acquisition competitive constraints from competitors in the power generation and retail electricity supply market.
The proposed transaction involved the purchase by SMC Global Power Holdings Corp. of AES? 51 percent stake as well as EGCO?s 49 percent interest in Masin-AES Pte. Ltd.
SMC Global?s portfolio includes the Sual power plant in Sual, Pangasinan, San Roque hydroelectric multipurpose power project in San Manuel, Pangasinan; Ilijan power plant in Batangas, Limay Greenfield clean coal plant in Limay, Bataan, Angat hydroelectric power plant in Bulacan, and greenfield power plants in Malita, Davao del Sur and Limay, Bataan.
With the purchase, SMC Global intends to improve its baseload capacity to provide affordable and reliable supply of power to its customers.
AES, on the other hand, aims to re-shape its global portfolio of businesses and markets to be consistent with its new strategy.