SMC to finalize buyout of ATI terminal

Food and beverage giant San Miguel Corp. (SMC) is set to finalize a deal with port operator Asian Terminals Inc. (ATI) to acquire the latter’s grain terminal in Mariveles, Bataan.

SMC president Ramon Ang told reporters Friday night that the company’s purchase of the Mariveles grain terminal is expected to be completed next year as minor issues that have been delaying the deal have already been threshed out.

"Legal issues concerning the property have already been threshed out," Ang said.

SMC has offered to buy the Mariveles grain terminal for P2.15 billion. The facility is considered as the country’s most modern bulk grain handler and one of the best facilities of its kind in Asia.

Under the agreement signed with the Philippine Ports Authority (PPA), ATI has the right to develop and operate a bulk grain terminal in Mariveles for 15 years through 2007, renewable for another 15 years.

SMC said the acquisition of the grain terminal would usher improvements in the company’s agribusiness operations.

The Mariveles terminal can handle deliveries from Panamax vessels at a rate of 8,000 metric tons to 10,000 metric tons per day.

Last year, the Mariveles grain terminal handled 2.10 million metric tons of grain products, an improvement of 25.9 percent from the previous year. The increase is attributed to the more stable peso versus the dollar in 2002.

Grains traders and flour millers also channeled more products through the terminal as the better economic condition generated higher demand for both raw materials and finished products.

SMC has been on a buying binge since 2001 with deals like Purefoods acquired from the Ayala Group and Cosmos Bottling Corp. from the Concepcion family.

This year, SMC is seeking growth opportunities in the Asia-Pacific region to complement its dominant foothold in the local beverage market.

ATI will use proceeds from the sale of the Mariveles terminal for its ongoing modernization program in the South Harbor.

The company currently operates various international ports in the country: Container Terminal, General Stevedoring Terminal and the new Eva Macapagal Super Terminal at the South Harbor, Port of Manila; Port of Batangas, which has terminals for both cargo and passenger ferries; and Port of Gen. Santos City.