SMC merges packaging units

MANILA, Philippines — San Miguel Corp., the country’s diversified conglomerate, will merge its packaging units.

In a disclosure, SMC said its board of directors approved the merger of San Miguel Yamamura Asia Corp. (SMYAC) and San Miguel Yamamura Packaging Corp. (SMYPC) wherein SMYPC will be the surviving entity.

SMC also agreed to buy five percent of SMYAC, the company said.

“The board of directors approved the purchase by SMC of SMYAC and the merger of SMYAC and SMYPC and the delegation of authority to management to determine the relevant terms and conditions of any deed, agreement, or document required to give effect to the proposed transactions,” SMC said.

With the merger, SMC said all of its packaging business, together with its joint venture partner Japan’s Nihon Yamamura Glass Co. would be consolidated under SMYPC.

At present, SMYPC provides total packaging solutions. These include a wide range of quality products - glass, plastics, metal, flexibles, PET, molds and paper and reliable services and technical expertise. Its plants and facilities provide a dynamic and a strategically accessible supply base.

Packaging is one of the businesses of SMC, together with power, infrastructure, oil refinery and food and beverage.

SMC reported lower earnings in the first half as fuel and oil unit Petron continued to be weighed down by prevailing movements in world crude oil prices and weak refining margins.

First semester net income dipped by five percent to P26.2 billion, while consolidated operating income slid by 14 percent to P57.6 billion.

The company reported strong volumes across most of its businesses, pushing consolidated revenues higher by two percent to P509.5 billion.