San Miguel to incorporate car distribution unit

Diversified conglomerate San Miguel Corp. (SMC) intends to incorporate a new business unit that will import and distribute BMW cars in the country.

It has filed the incorporation papers of SMC Asia Car Distributors Corp. with the Securities and Exchange Commission (SEC), the company told the Philippine Stock Exchange on Tuesday.

"Further to our disclosure dated July 6, 2017 relating to the investment by the company in the business of importation, distribution and servicing of BMW vehicles in the Philippines, we advised that, July 17, 2017, the constitutive documents for the incorporation of SMC Asia Car Distributors Corp. was filed with the SEC," SMC said.

As the corporate vehicle in the motoring business, SMC Asia Car will be 65 percent owned by SMC and 35 percent by Jose Alvarez.

Alvarez is chairman of Asian Carmakers Corp. (ACC) – the official importer and distributor of BMW cars in the country.

Early this month, Alvarez confirmed ACC was in talks with SMC president and COO Ramon Ang concerning a majority stake in the Asian Carmakers.

ACC has an enterprise value of P2 billion.

Ang said he would likely join Asian Carmakers via SMC. — VDS, GMA News