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Petron eyes mergers and acquisitions route for 2010 expansion

Posted / Last update: 28-12-2009

The Philippines’ largest oil refiner said it would pursue mergers and acquisitions (M&A) next year, with an eye on assets that complement its core business and leverage on its strengths. In a filing with the Securities and Exchange Commission, Petron Corp. said it will pursue growth and expansion through changes in internal business processes, adapting to the shifting needs of the market and tapping into new markets and opportunities

With its partnership with San Miguel Corp. (SMC), Petron said it would maximize the synergies with the food and beverage conglomerate’s network, products and services to enhance of the refiner’s retail and distribution network.

The oil retailer said it also plans to build aviation facilities in tourist destinations like Boracay, Bohol and Palawan, and gain a substantial market share in the liquefied petroleum gas (LPG) market. “[This will] be supported by more outlets and refilling plants that will bring the product closer to the market,” Petron said.

The company also said it would build more auto-LPG facilities in filling stations and fleet accounts. “Lube sale will be intensified with more lube outlets and Car Care Centers. These expansion initiatives will be complemented by customer relationship programs that will enhance the customer experience,” it added.

Petron is the market leader in the domestic oil industry with an overall market share of 36.4 percent as of July last year. It also has the biggest refining capacity, an extensive distribution network and most number of service stations.

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