Meralco in focus: Recounting the epic MVP, RSA corporate war

In the late 2000s, Philippine business saw an intense corporate war as two of the country's most aggressive conglomerates, Metro Pacific Investment Corp. (MPIC) of Manuel V. Pangilinan and San Miguel Corp. (SMC) of Ramon S. Ang, went to war for a single asset: Manila Electric Co. (Meralco).

- By JAMES A. LOYOLA

Then controlled by the Lopez family, Meralco was considered the “crown jewel” of Philippine business. For years, the battle for the nation's largest power distributor was a “Game of Thrones” in the corporate world, with Pangilinan and Ang waging a relentless war of acquisitions, legal maneuvers, and boardroom showdowns.

The rivalry began when the Lopez-controlled First Philippine Holdings Corp. (FPHC), which had historical ties to Meralco, signaled its willingness to divest a substantial portion of its stake.

The Lopez group’s move immediately piqued Pangilinan’s interest. He saw Meralco as a key component of his vision, as it offered synergies with his existing empire—telecommunications giant PLDT Inc. and infrastructure holding firm MPIC.

Meanwhile, Ang, who was aggressively expanding San Miguel from its traditional food and beverages business into infrastructure and power, also recognized Meralco’s potential. Like Pangilinan, he viewed the utility as crucial to his growing power generation business and future expansion plans.

But what motivated the Lopez family to divest from such a highly profitable and significant asset? Well, the family was perceived under intense political pressure due to its ownership of the broadcast giant ABS-CBN Corp., a situation compounded by substantial debt.

For the Lopezes, selling their Meralco stake-which holds a near-monopoly on power distribution in Metro Manila and serves millions of customers-was seen as a move to deleverage and refocus their business.

Duel for Meralco's control