Philippines: Phoenix Petroleum cleared to buy out Petronas LPG

Philippines: Phoenix Petroleum cleared to buy out Petronas LPG

Phoenix Petroleum, headed by Davao-based businessman Dennis Uy, has secured
the go-signal from the Philippine Competition Commission (PCC) to acquire
the Petronas liquefied petroleum gas (LPG) brand in the Philippines.

This allows the oil company to acquire the entire equity interest of PDB
(Netherlands) B.V. (PDBN) in Petronas Energy Philippines Inc. (PEPI), which
holds the LPG business in the country.

The approval also clears the company to take over Duta Inc. and its
subsidiaries, which manage and hold the various parcels of land used in the
business operations of PEPI.

In deciding favorably on the acquisition, the PCC said the transaction "does
not result in a substantial lessening of competition in the relevant
market."

It also said "there appears to be no ability for the merged firm to engaged
in foreclosures" and "there appear (sic) to be sufficient competitive
constraints on the merged firm post-acquisition."

Last May, Phoenix Petroleum announced plans to acquire the Petronas LPG
brand for $126.1 million or P6.27 billion.

This will expand its product portfolio to include LPG.

"The company views the LPG business as a strong strategic fit as it broadens
its product portfolio and petroleum presence across the country, with cross
selling opportunities in fuel and LPG to consumers and corporates," the
company said.

Incorporated in 1995, PEPI has been engaged in the business of selling LPG
in cylinders for household and commercial use as well as LPG in bulk for
industrial use and autogas, an environmentally-friendly alternative fuel for
vehicles, for over 20 years.

It generates most of its sales in Visayas and Mindanao - under-penetrated
regions, with increasing disposable incomes and attractive demand prospects,
Phoenix Petroleum said.

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Link to Original Article:
http://www.philstar.com/business/2017/08/05/1725067/phoenix-petroleum-cleare
d-buy-out-petronas-lpg

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com