July 22, 2008


San Miguel and Toyota Tsusho may acquire major Philippines grains terminal


San Miguel Corp and Japanese trading firm Toyota Tsusho Corp. are in talks for a possible joint acquisition of the Mariveles Grain Terminal in Bataan, a province near the Philippine capital Manila, the Philippine Daily Inquirer newspaper reported.


The report said the acquisition may be worth about PHP1 billion (US$22.5 million) and could be sealed in a month's time.


The Mariveles grains terminal is a major gateway for bulk handling of commodities such as grains, flour, soy and corn.


Under agreements entered with the state's Philippine Port Authority and the provincial government of Bataan, publicly listed port operator Asian Terminals Inc. (ATI.PH) holds the right to develop and operate the terminal for 20 years until 2013. The contract is renewable for another 20 years.


The report did not give any details on the acquisition. It did not say if ATI will sell its rights over the entire property or over a part of it.


In December 1993, ATI and San Miguel entered into a sublease agreement covering two hectares of the 10-hectare area originally leased by ATI. The subleased property is being used by San Miguel for its integrated bulk handling terminal operations for malt, the report said.

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