MANILA, Philippines - Lucio Co's holding company Cosco Capital is acquiring Liquigaz Philippines Inc., the second largest supplier of LPG in the country.
In a statement, Cosco Capital said under the deal, it will acquire 90 percent of Liquigaz from SHV Energy of the Netherlands. Minority partner PR Gaz will maintain a 10 percent stake in Liquigaz.
Cosco said the deal is expected to be completed in the next few days, although did not give financial details.
The deal marks Co's entry into the LPG business.
Liquigaz accounts for 30 percent of the total market volume of LPG in the country, and is the biggest seller of LPG in Luzon, where its storage facilities are located.
"The acquisition marks Cosco's entry into the LPG business with a strong initial presence in the upstream business. Cosco envisions a move towards the downstream retail business in the near future via either mergers and acquisitions of existing re-fillers or establishing its own re-filling network and eventually retailing LPG directly to the wider household end user market," the company said.
The bulk (85 percent) of Liquigaz's traded volume goes to refiners and distributors, while the rest is sold to commercial end-users.
Cosco is Co's consumer-focused holding company, with businesses in supermarkets (Puregold), wine and spirits distributorship, real estate assets and an oil storage facility.