Philippines food and beverage giant San Miguel Corp is set to enjoy meat market dominance through a functional merger of its meat business, comprising of San Miguel Campo Carne and Monterey Foods, with the meat processing company Pure Foods, an arm of the Ayala Corp conglomerate.
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San Miguel has yet to sign a purchasing agreement for Pure Foods, but the merger is due to be completed in time for the company’s annual meeting in May.
An official revealed: “We want the same businesses to be synergies – feeds to feeds, processed meat to processed meat, [distribution to distribution] and so on.” This is expected to mean cost efficiency and enhanced productivity, and the companies say that the brands will be retained.
With the addition of Pure Foods’ brands, which command the dominant market share in the Philippines, San Miguel will become the undisputed leader of the Philippine food industry. The Pure Foods-Hormel line, which includes Spam, will merge with San Miguel’s own processed meat products, which alone control 13% of the market.
A senior official from the group also suggested that San Miguel is gearing up for a listing of its meat business on the Philippine Stock Exchange through the takeover of Pure Foods.
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By GlobalData
