Merger of tollways nears

Metro Pacific Tollways Corp. (MPTC) and San Miguel Corp. (SMC) are targeting the signing of an agreement to merge their domestic tollway businesses by the end of the year, as negotiations approach the final stages of asset valuation.

“My understanding is that we are nearing, we are in the (last stage of) the valuation phase of SMC Tollways and our tollways. The numbers have been submitted,” MPTC Chairman Manuel V. Pangilinan told reporters.

The proposed merger would combine the domestic tollway operations of MPTC, the tollway arm of Metro Pacific Investments Corp. (MPIC), and SMC into a joint venture.

Pangilinan said the companies still need to discuss and agree on the valuations of their respective tollway assets before proceeding with the transaction.

“There will be some conversations about what the values are on both sides so we have some idea, a conversation still has to happen and then once we agree then it’s all set,” he said.

“I hope we can sign an agreement with San Miguel this year, by the end of this year, because we have to go through the regulatory and government approvals,” he added.

The latest timetable follows an earlier target to complete the transaction by the third quarter of 2026.

Pangilinan previously said the proposed joint venture could have a 55:45 ownership structure in favor of SMC, with SMC Chairman and Chief Executive Officer Ramon S. Ang expected to lead the combined tollway business.

However, the final ownership structure remains subject to negotiations and asset valuations.

MPTC previously said the planned merger would cover only its domestic tollway assets, excluding its investments in Indonesia and Vietnam.

SMC, through its infrastructure business, operates major toll roads, including the South Luzon Expressway, Skyway System, Tarlac-Pangasinan-La Union Expressway (TPLEX), Southern Tagalog Arterial Road (STAR Tollway), and Ninoy Aquino International Airport Expressway (NAIAX).

MPTC’s tollway portfolio includes the North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway (SCTEX), NLEX Connector, Manila-Cavite Toll Expressway (CAVITEX), Cavite-Laguna Expressway (CALAX), and Cebu-Cordova Link Expressway (CCLEX).