Philippine taipan Henry Sy, who controls SM Investments Corp is now in discussion with JP Morgan Chase & Co, BDO Unibank Inc and Macquarie Group Ltd for the merger of its property units into one company. The planned merger was confirmed by three individuals with knowledge of the matter who spoke on condition of anonymity.

The merging firms projected in the plan would result in the creation of one of the largest companies in the country in terms of market value. The four companies sought to be merged are SM Prime Holdings Inc, the country's largest shopping mall operator and the real estate companies under the control of the SM Group. The combined market value of the firms would easily top Php480 billion or US$11.7 billion.

The plan to create a single publicly traded company was commenced as early as last month. The goal is to achieve tax efficiency as well as the flexibility to combine developmental income and recurring incomes. This was confirmed by the eldest son of the elder Sy, Henry Jr.

The real estate companies of the group includes SM Development Corp, Highlands Prime Inc and Belle Corp. Highlands is property developer in the towns south of Manila while Belle is building a casino in Manila.