MANILA, Philippines – Lucio Co's holding firm Cosco Capital has completed the acquisition of liquefied petroleum gas (LPG) supplier Liquigaz Philippines Inc.
In a disclosure to the Philippine Stock Exchange on Monday, Cosco said the acquisition of the 100 percent ownership of Liquigaz was done through Canaria Holdings Corporation, which is 90 percent owned by Cosco Capital and 10 percent owned by PR Gaz Inc.
No details on the amount of the acquisition were given.
“Cosco Capital envisions its entry into the downstream LPG retail business through mergers and acquisitions of existing LPG refillers and retailers or via the establishment of its own LPG refilling and retailing network. Cosco Capital likewise envisions the direct LPG retailing to the wider household end-user market by way of leveraging on the market reach of the Puregold hypermarkets, supermarkets and extra stores,” the company said.
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.
Liquigaz, which the second largest supplier of LPG in the country, accounts for approximately 30 percent of the total market volume and is also the biggest supplier of LPG in Luzon.
Liquigaz is engaged in the wholesaling segment of the LPG market, with 85 percent of its traded volume going to refillers and distributors while the remaining 15 percent is sold to commercial end-users such as restaurants, hotels, fast food outlets, hospitals, supermarkets and autogas stations.