San Miguel Corp and the Lucio Tan Group of Companies will be collaborating to jointly bid for the Mactan-Cebu International Airport expansion project.
A new joint venture will be formed under the deal, San Miguel says in a statement on the Philippine Stock Exchange. The conglomerate holds a 49% stake in flag carrier Philippines Airlines and its low-cost partner Air Philippines.
The country's department of transportation and communications recently revised guidelines to allow airline owners and their affiliates to participate in the bidding for the Mactan-Cebu project, following opposition from Cebu Pacific's parent JG Summit, and San Miguel.
The new rule, however, says that the bidder may only own up to a 33% stake of the company that it bids under.
Other bidders of the project include India's GMR Infrastructure and partner Megawide Construction Corp, as well as JG Summit with partner Metro Pacific Investments Corp.