Don Ramon's quest

Close friends of Ramon Ang, San Miguel Corp. president and CEO, fondly call him “Don Ramon.” A Mechanical Engineering graduate of the Far Eastern University, Ramon has come a long way from where he started. He joined San Miguel in 1998, and together with SMC chairman Danding Cojuangco, turned the conglomerate into what it is today – the biggest publicly-listed food and beverage company in Southeast Asia.

Over the years, SMC has steadily expanded its operations to countries like Indonesia, Malaysia, Singapore, Thailand and Myanmar, even Laos and Cambodia, with factories in Hong Kong and China. In fact, their presence is felt virtually all over the world mainly due to the SMB pale pilsen brand. Having saturated the food and beverage industry and established itself as a market leader with many of its products getting either the top or number two spot, not surprisingly, SMC has set its sight on other sectors.

Its recent acquisition of the Government Service Insurance Corporation (GSIS)’s remaining 27-percent stake in Meralco for P30 billion is, according to Don Ramon, just an initial step towards diversification. SMC stockholders had previously granted approval for the company to diversify into other industries – which is an indication of the enormous trust they have in the leadership of Ramon Ang and Danding Cojuangco.

My sources told me that after successfully acquiring the GSIS stakes in Meralco, San Miguel’s bid for the Ashmore Group’s 50 percent stake in Petron is already a “done deal.” According to insiders, SMC has signed up to take over control of Petron for a yet undisclosed amount, and the current Board has been asked to execute individual resignations effective Jan. 1, 2009. Negotiations are also underway between SMC and an Indonesian firm engaged in the mining and oil industry, in line with San Miguel’s announced plans to engage in high growth industries like power, mining, infrastructure, water, utilities and property. 

Some people are concerned, however, that San Miguel may not have the expertise in these high growth industries. But those who know Ramon Ang –known to modestly describe his role in San Miguel as that of a “day-to-day manager” – believe in his ability to grow any business or investment that he sets his mind to. No doubt Don Ramon is on a quest to expand the food and beverage giant’s reach, and obviously he follows the Warren Buffet dictum to just “do things when opportunities come along.” Perhaps Ang also believes that “If the duck quacks, feed it.” Having thus heard the Meralco and Petron ducks quacking, he certainly lost no time feeding them.

In any case, the SMC acquisition could turn out to be a blessing in disguise after all. In the first place, government should not be involved in the running of private corporations, even public utility firms for that matter. And with the combined resources of the Lopez Group and San Miguel, many believe that Meralco will be in a much better position to improve its services even more.

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Not a cold Turkey

Last May, we were invited to visit Turkey by Turkish Ambassador to the Philippines Adnan Basaga together with fellow STAR columnist Jarius Bondoc, but unfortunately I had to cancel due to a conflict in my schedule. Turkey celebrated its 85th National Day yesterday, and its recent election as a non-permanent member of the UN Security Council (152 votes from the 192-member general assembly) is certainly opportune. While Turkey is a founding member of the UN, it had not held a seat in the UN Security Council since 1961. According to Ambassador Basaga, the overwhelming vote represents the confidence entrusted in his country as well as recognition of their efforts for peaceful foreign policy based on “dialogue and cooperation.”

There’s no question Turkey plays a major role in Europe and in Western Asia, the country being bordered by Bulgaria, Greece, Georgia, Armenia, Azerbaijan, Iran, Iraq and Syria. Many therefore recognize Turkey’s critical role in the fight against terrorism, organized crime and trafficking of all kinds. It is also an integral player in international efforts to address arms control and disarmament issues.

With its GDP growth rate averaging at 7.4 percent from 2002 to 2007, Turkey is considerably one of the fastest growing economies. While people in the rural areas still engage in traditional agricultural activities, the country has a number of urban areas with highly dynamic industrial complexes. The tourism industry is also a significant contributor to Turkey’s economy, with $18.5 billion in revenues from more than 27 million visitors last year.

But while Turkey has successfully gotten itself elected into the UN Security Council, its membership into the European Union continues to be an uphill climb. Since it was granted official candidate status for membership in 1999, the process of accession has been slow especially with France and Germany still voicing their opposition. But as Turkey continues to make strides towards reforms in many areas such as social security, the healthcare system and electoral procedures, it will not be surprising if opposition will eventually thaw and soon, Turkey will no longer be left out in the cold.

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