Pangilinan-led MPTC puts tollway merger talks with SMC on hold

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In January, Metro Pacific Tollways Corporation said it was raising P50 billion through a private placement ahead of its merger with San Miguel Corporation

MANILA, Philippines – San Miguel Corporation (SMC) on Monday, March 3, confirmed that Metro Pacific Tollways Corporation (MPTC) deferred their talks to merge.

This came after MPTC Chairman Manuel Pangilinan told reporters that the transaction would not push through as MPTC is in the process of raising money to settle its debts. In January, MPTC said it was raising P50 billion through a private placement.

The Pangilinan-led firm was aiming to close the transaction by 2026.

MPTC is the tollway firm behind the North Luzon Expressway (NLEX), Subic-Clark-Tarlac Expressway, Manila-Cavite Expressway, Cavite-Laguna Expressway (CALAX) Cebu-Cordova Link Expressway, and the NLEX Connector.

MPTC was gunning for a 50-50 split with SMC, which built and manages Skyway, NAIA Expressway, South Luzon Expressway, STAR Tollway, the Tarlac-Pangasinan-La Union Expressway, and the Muntinlupa-Cavite Expressway.

The two firms signed a P72-billion deal in 2023 to build and operate the Cavite-Batangas Expressway (CBEX) and the Nasugbu-Bauan Expressway (NBEX).

Both the CBEX and the NBEX are planned to eventually be linked to the CALAX.

Reviewing cashless transactions

Last week, both tollway firms issued separate statements to support new Transport Secretary Vince Dizon’s decision to halt the implementation of a fully cashless system in toll expressways.

Dizon postponed the switch pending a review of the toll collection systems and infrastructure. Many motorists had been complaining that they still encounter problems when going through toll gates with their RFIDs, for instance.

“Since the policy was first introduced in 2020, almost all plazas are now capable of automatic license plate recognition, and we are investing an additional P1.4 billion to upgrade the rest,” MPTC said in a statement.

Meanwhile, SMC Infrastructure pointed out that to ensure seamless contactless toll collection in all expressways, a “full adoption” of a cashless system is needed.

“Without a uniform cashless system, seamless integration between different toll operators cannot be fully realized,” SMC Infrastructure said.

“We remain committed to working closely with the Department of Transportation and other stakeholders to refine and enhance the system, ensuring it is inclusive, effective, and serves the best interests of all road users,” it added. – Kaycee Valmonte/Rappler.com