1. Cosco hydro power
2. Renewable energy firm
3. Sustainable energy solutions
Billionaire Lucio Co expands his reach in the renewable energy sector by acquiring Matuno River Development Corp. through his company, Cosco Capital Inc. This move marks his second venture into renewable energy this year, following the acquisition of Catuiran Hydropower Corp. Co joins other tycoons in the green power race, aiming to capitalize on the growing market for clean energy. The acquisition of MRDC, developer of the Matuno River hydroelectric power plant, will further strengthen Cosco’s position in the sector. With sustained consumer spending boosting Cosco’s earnings, the company is poised for growth in the renewable energy market.
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Billionaire Lucio Co is making waves in the renewable energy sector by expanding his reach through the acquisition of Matuno River Development Corp. (MRDC), a hydropower-focused company based in Nueva Vizcaya. This move is part of Co’s strategy to further establish his presence in the green power race alongside other tycoons in the industry.
Cosco Capital Inc., Co’s listed supermarket, liquor, and property holding company, recently announced that its board of directors approved the acquisition of all outstanding shares of MRDC. The pricing for the acquisition of MRDC’s 9.18 million shares is yet to be disclosed, but Cosco is poised to enter into another profitable business within the renewable energy sector through this transaction.
MRDC is known for developing the 8.66-megawatt Matuno River hydroelectric power plant, a run-of-river facility covered by a hydro power service contract with the Department of Energy. This marks Co’s second venture into the renewable energy space this year, following the acquisition of 60 percent of Catuiran Hydropower Corp., the operator of an 8-MW hydropower plant in Oriental Mindoro.
Co now joins the ranks of other prominent tycoons such as the Zobel family, Edgar Saavedra, the Aboitizes, and Manuel V. Pangilinan, who are actively participating in the robust renewable energy market. In a bid to boost investments in the sector, Co first announced his plans to foray into clean energy in December 2023, aiming to build a profitable business portfolio in the medium and long term.
The renewable energy market in the Philippines has been gaining traction, driven by increased awareness of environmental sustainability and the growing demand for clean energy sources. Co’s strategic move to expand his presence in this sector not only aligns with global efforts to combat climate change but also positions his company for long-term growth and profitability.
Cosco Capital’s first-quarter earnings saw a 10.4 percent increase to P3.4 billion, driven by sustained consumer spending despite high inflation. Revenues also grew by 7.1 percent to P50.9 billion, with its business segments benefiting from strong consumer demand. These positive results further underscore the potential for growth and success in the renewable energy sector for Cosco Capital under Co’s leadership.
In conclusion, Co’s acquisition of MRDC and his foray into the renewable energy sector demonstrate his commitment to sustainable development and his vision for a greener future. With the increasing focus on clean energy solutions globally, Co’s strategic investments in hydropower and renewable energy are not only financially rewarding but also contribute to the collective efforts in addressing climate change and building a more sustainable world.
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