San Miguel and Pure Foods discuss merger

A functional merger may occur between the meat businesses of Philippine food and beverage group San Miguel Corp. and Pure Foods Corp., the company about to be acquired by San Miguel from conglomerate Ayala Corp., said a high-ranking San Miguel official over the weekend, the Wall Street Journal reports. The merger will create the dominant brands in their respective segments and give San Miguel virtual leadership in terms of market share across the group. San Miguel is also considering using Pure Foods as the vehicle for the eventual listing of its meat business, comprised of San Miguel Campo Carne Corp. and Monterey Foods Corp., on the Philippine Stock Exchange, the official said. The official said San Miguel expects to complete the acquisition of Pure Foods in time for its annual meeting Thursday. While negotiations are almost completed, San Miguel and Pure Foods' owner Ayala have yet to sign a purchase agreement. Source: Wall Street Journal