Metro Pacific Tollways Corp. (MPTC) and San Miguel Corp. (SMC) are aiming to sign an agreement merging their domestic tollway businesses by the end of the year, with negotiations entering the final stage of asset valuation.

"My understanding is that we are nearing, we are in the (last stage of) the valuation phase of SMC Tollways and our tollways. The numbers have been submitted," MPTC Chairman Manuel V. Pangilinan told reporters on the sidelines of a financial briefing on Wednesday.

The proposed transaction would fold the domestic tollway operations of MPTC, the tollway arm of Metro Pacific Investments Corp. (MPIC), and those of SMC into a joint venture. If completed, it would put toll roads serving both the northern and southern expressway corridors out of Metro Manila under a single venture, combining the operators of the main routes linking the capital with the rest of Luzon.

Mr. Pangilinan said the two companies must still discuss and agree on the valuation of their respective tollway assets before the deal can move forward.

"There will be some conversations about what the values are on both sides so we have some idea, a conversation still has to happen and then once we agree then it's all set," he said.

"I hope we can sign an agreement with San Miguel this year, by the end of this year, because we have to go through the regulatory and government approvals," he added.

The latest timetable follows an earlier target to complete the transaction by the third quarter of 2026. The end-of-year signing target reflects the approvals still ahead: even after a deal is signed, it would need to clear regulatory and government processes before the combined venture can take shape, making agreement on the valuations the immediate step to watch.

Mr. Pangilinan previously said the proposed joint venture could adopt a 55:45 ownership structure in favor of SMC, with SMC Chairman and Chief Executive Officer Ramon S. Ang expected to lead the combined tollway business. However, the final ownership structure remains subject to negotiations and the asset valuations.

MPTC has previously said the planned merger would cover only its domestic tollway assets, excluding its investments in Indonesia and Vietnam.

Through its infrastructure business, SMC operates major toll roads including the South Luzon Expressway, the Skyway System, the Tarlac-Pangasinan-La Union Expressway (TPLEX), the Southern Tagalog Arterial Road (STAR Tollway), and the Ninoy Aquino International Airport Expressway (NAIAX).

MPTC's tollway portfolio includes the North Luzon Expressway (NLEX), the Subic-Clark-Tarlac Expressway (SCTEX), the NLEX Connector, the Manila-Cavite Toll Expressway (CAVITEX), the Cavite-Laguna Expressway (CALAX), and the Cebu-Cordova Link Expressway (CCLEX). Taken together, the two portfolios span Luzon's main expressway corridors from Metro Manila — NLEX, SCTEX and TPLEX heading north; SLEX, the Skyway, CALAX and the STAR heading south — along with the NLEX Connector, CAVITEX, NAIAX and CCLEX in Cebu.

MPTC is the tollway arm of MPIC, one of the Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.

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Source: BusinessWorld — MPTC, SMC eye year-end signing of tollway merger deal