SEC clears Puregold takeover of Budgetlane grocery chain

The Securities and Exchange Commission (SEC) has issued the certificate of merger to Lucio Co’s Puregold and the operator of grocery chain Budgetlane, paving the way for the conversion of more stores into the Puregold brand.

In a disclosure to the Philippine Stock Exchange (PSE), Puregold said the SEC has already issued the certificate of merger of Puregold with Daily Commodities Inc., First Lane Super Traders Co. Inc. and Goldtempo Co. Inc.

The acquired companies operate under the Budgetlane, Budgetlane’s Superpalengke, Budgetlane Supermart and Budgetlane Sulitmarket brands.

“Seventeen stores, mostly located in Cabanatuan City and the provinces of Rizal, Bulacan and Aurora, will soon carry the brand name and be converted to Puregold stores,” it added.

Puregold announced the acquisition in 2015 as part of its continued buyout binge of neighborhood groceries and supermarkets.

Budgetlane, owned by the Tan family of Pasig, started as a small grocery store at the old Pasig Public Market. The small grocery store was converted into a supermarket after 22 years.

Puregold had also acquired Parco, Unilane and Sioland in San Pablo, Laguna.

Officials said the company continues to be on the lookout for opportunities to acquire smaller supermarkets and neighborhood groceries.

Co’s businesses have been doing well, with income rising 6.2 percent in the nine months to September for his holding company Cosco Capital Inc., which includes the grocery retailing business Puregold and S&R Membership Shopping Club.

Cosco Capital reported a higher nine-month income of P5.4 billion from a year ago, driven by the liquefied petroleum gas and grocery businesses

Puregold Price Club Inc. and S&R Membership Shopping Club, contributed 58 percent of total profit, followed by the commercial real estate segment with 23 percent and the liquor distribution with 12 percent.

By the end of the year, the company targets to open 25 new Puregold stores and two new S&R warehouse outlets.

As of end-September, Puregold has 352 stores nationwide. These include 291 Puregold stores, 13 S&R membership shopping warehouse, and 31 S&R New York Style QSR, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.