Conglomerate San Miguel Corp. (SMC) is set to take a 65-percent stake in the local importer and distributor of Munich, Germany-based luxury car maker BMW.
SMC said in a stock exchange disclosure yesterday that it filed the necessary incorporation papers for SMC Asia Car Distributors Corp. with the Securities and Exchange Commission on July 17.
SMC Car Asia will be the new corporate vehicle for the venture and will be 65 percent-owned by SMC with the remaining 35 percent to be kept by the previous owner, Jose Alvarez.
SMC president Ramon Ang, a car enthusiast, earlier this month said he was in talks with Alvarez to acquire a majority stake in the latter’s BMW distributorship, Asian Carmakers Corp. (ACC).
The deal would give SMC a foothold in the country’s automotive sector, albeit, in a limited capacity, given BMW’s luxury market clientele. BMW prices range from P2 million to above P12 million for a top-of-the-line 7-series.
ACC reported flat growth in 2016, although its management recently noted a “temporary surge” in sales as consumers anticipated a looming excise tax increase on cars.
Luxury vehicle retailers are expected to bear the brunt of the added levy.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.