Philippines: San Miguel and Toyota Tsusho to operate a grain terminal in the Philippines

Philippine food and beverage giant San Miguel Corp. and trading house Toyota Tsusho Corp. plan to form a joint venture to operate a grain terminal in the Philippines, Asia Pulse reported on August 24.

The acquisition of one of the most modern in Southeast Asia Mariveles Grains Terminal in Bataan province is to be completed by the end of the year.

Through this deal, major beer brewer San Miguel aims to reduce importing costs and stabilize its supply of wheat and other ingredients, while Toyota Tsusho hopes to grow its business in areas other than cars and metals.

According to San Miguel President Ramon Ang, the Philippine company will control 60 per cent of the venture, with Toyota Tsusho taking the remaining 40 per cent. The venture will operate the Mariveles Grain Terminal in central Luzon, which is located near San Miguel's largest brewery.

San Miguel will purchase the operating rights to the terminal for 1.6 billion Philippine pesos (US$35.39 million) from Asian Terminals Inc. The deal will give San Miguel complete management over the port, it is reported.

San Miguel had been in talks with Asian Terminals, which owns a 20- year contract to develop and operate the grain terminal until 2013, for the past five years, but had been unsuccessful in closing the deal.

26 August, 2008