San Miguel Corporation (SMC), the largest publicly listed company in the Philippines as well as the largest food, beverage and packaging company in Southeast Asia, has unveiled its plans to invest $34 billion in an oil refinery with a capacity of 250,000 barrels a day, an integrated steel complex and an ocean-tide power plant with initial capacity of 1,200 megawatts. The company also said on Friday it is “evaluating and may bid” for Saigon Beer Alcohol Beverage Corp (Sabeco).
Nearly 90% of Vietnam’s largest brewer are still state owned but Vietnamese Ministry of Industry and Trade announced last year (inside.beer 4.9.2016, inside.beer 12.12.2016) to sell all of its shares in 2017. Seven foreign bidders, including, AB InBev, Heineken, Kirin Holdings, Asahi Group Holdings, Thai Beverage and Singha Asia Holding, have already signed up for the purchase process.
Since 2008, SMC has ventured beyond its core businesses, becoming involved in fuel & oil (Petron Corporation), power generation and infrastructure. It was briefly involved in Philippine Airlines from April 2012 to September 2014. Last year SMC sold its telecommunication business for $1.5 billion.
“The businesses we ventured into have matured, such that the company is in a very stable position,” said Ramon Ang, President and CEO of SMC, in an interview on March 31. He expectes profits to rise at least 20 percent to about 60 billion pesos ($1.2 billion) this year.
SMC reported earlier this year (inside.beer 18.1.2017) that it will invest $300 million in a new brewery and bottling plant in Cagayan de Oro City on Philippines’ second largest and southernmost major island Mindanao and expand its existing facility in Sta Rosa in Laguna.