PHOENIX Petroleum Philippines, Inc. is evaluating the “viability” of the gasoline stations in which it will put up Family Mart units as it formally expands its business to include convenience stores after anti-trust regulators approved its offer to buy the retail brand’s local franchise.
“With this we can further expand Phoenix Petroleum’s business by entering the convenience store retailing market that will allow us to offer quality products withing the public’s immediate reach,” said Raymond T. Zorrilla, the company’s vice-president for external affairs, when sought to comment on plans for Family Mart.
In its decision dated Jan. 3, 2018, the Philippine Competition Commission (PCC) approved the acquisition by Phoenix Petroleum of shares in Philippine Family Mart CVS, Inc. It said the transaction, which was first disclosed in October 2017, does not result in a substantial lessening of competition in the relevant market.
Phoenix Petroleum, which said it was “elated” by the PCC’s decision, will determine viability of existing gasoline stations “to accommodate Family Mart as part of our non-fuel related business,” Mr. Zorrilla said.
“Determination will be based on available locator spaces, vehicle traffic as well as work/household population within the trading areas,” he said.
He said the deal has yet to close as PCC approval was issued only recently. He added the full announcement of the company’s plans “will be very soon.”
In its approval, PCC said sufficient competitive constraints on the parties remain from other market participants.
Phoenix has said the acquisition of Family Mart complements its retail fuel business. The deal marks its entry into the fast-growing domestic convenience retail market. Family Mart has 67 stores in Luzon.
As of the third quarter of 2017, Phoenix had a total 523 service stations, or 18 more than at end of 2016, company officials said.
On Friday, Phoenix Petroleum rose 3.24% in early afternoon trading to P13.40 each. — Victor V. Saulon
