Diversified conglomerate San Miguel Corp. (SMC) is eyeing a majority stake of up to 51 percent in the P15.2-billion Tarlac-La Union Expressway (TLUTE), according to the company which leads the consortium of contractors undertaking the project.

Isidro Consunji, president of DMCI Holdings Inc., said SMC has expressed its interest to acquire 49 percent of TLUTE, with an option to increase the stake to 51 percent.

He added the beer-based firm is now conducting due diligence on the potential acquisition.

DMCI leads the consortium of private contractors participating in the TLUTE project, including First Balfour Inc., DM Wenceslao and Associates Inc., CM Pancho Construction Inc., RD Policaprio and Co. Inc., JV Angeles Construction Corp., JE Manalo and Co. Inc., New Kanlaon Construction Inc., EEI Corp., and Rockford Development Corp.

Consunji said the potential entry of SMC in TLUTE will give a financial boost to the project.

"We were looking for additional equity and coincidentally, they (SMC) were looking for investments," he said.

Since 2008, SMC has been in a buying binge that added power retailer Manila Electric Co., telecommunications firm Liberty Telecoms, and oil refiner Petron Corp. in its portfolio. It said it was also eyeing mining and infrastructure projects.

The TLUTE project, to be undertaken via the build-transfer-operate scheme with the Philippine government, involves the construction in two phases of the 88.5-kilometer, four-lane expressway from La Paz, Tarlac to Rosario, La Union.

The project will provide massive farm-to-market roads, lower vehicle operating costs and cut by half the travel time from Manila to Baguio City, a prime tourist destination in the country.

Construction started last September and will be completed by 2010. Full tollway operations is expected by 2013.