Department of Agriculture

Can San Miguel afford a pacman strategy?

Columnist Boo Chanco raised a pending question that came up several times when San Miguel Corp, the country’s largest conglomerate, started its acquisition binge: can it afford all these acquisitions? Chanco cited 3 major deals that need not just financial but managerial access: the recently concluded minority stake in legacy carrier Philippine Airlines, the upcoming NLEx-SLEx connector road project, and the MRT-7 rail project that will connect Manila to the populous Bulacan region. San Miguel president Ramon Ang had said the group has good access to funds via hefty credit lines. In the past, San Miguel and its subsidiaries have also accessed the equity market by selling shares. These strategies by a local player bids well for the Aquino government’s grand infrastructure plans, but Chanco said he and others are watching these closely.  

Read more on Philippine Star.

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