URC gets PCC approval to acquire Roxas Holdings assets

MANILA, Philippines ? Universal Robina Corp. (URC), the Gokongwei-owned listed food and beverage giant, has obtained the green light from the Philippine Competition Commission (PCC) to acquire the sugar milling and bio-ethanol assets of Roxas Holdings Inc. in La Carlota City, Negros Occidental.

Under the terms of the proposed sale transaction, which was approved by the government’s anti-trust body, URC would acquire buildings, improvements, machineries and equipment, and laboratory equipment as well as the parcels of land on which the plants, buildings and equipment are located and certain investment properties of RHI that are necessary for the continuing operations of the RHI Group’s sugar milling plant located in the Visayas province.

URC believes this would translate to synergies for the company, among other benefits.

“Aside from the operational synergies that will be achieved between La Carlota and existing URC operations in sugar, the acquisition is also intended to help sugarcane planters increase their productivity, as well as help local communities in Negros Occidental by providing more opportunities. In addition, the acquisition will allow URC to continue in its efforts to support the development of the sugar industry in the Philippines,” URC said in a disclosure yesterday.

Furthermore, it said the acquisition by URC of the sugar milling and bio-ethanol distillery assets would create synergies in the sugar industry in the province.

“This transaction is expected to enhance the capability of URC to provide good milling services to the sugarcane planters,” it added.

The PCC gave its approval last Sept. 3. Both parties did not disclose the amount, noting that this still depends on fair market value for the plant and equipment, as well as the building and land, and investment shares comprising the assets to be purchased.

The PCC’s decision was in stark contrast to its move last year when it thumbed down URC’s proposed acquisition of RHI subsidiary Central Azucarera Don Pedro Inc.

For that transaction, the PCC said the deal would have created market power for URC.