In 1957, the owners of the Tabacalera decided to sell Hacienda Luisita as well as the sugar mill, Central Azcurarera de Tarlac (CAT), because of the HUKBALAHAP rebels who were causing them problems.
The CAT was supposed to be sold to the Lopez family of Iloilo but then the purchase was vetoed by President Ramon Magsaysay due to the clan owning multiple businesses such as Meralco, ABS-CBN, the Manila Chronicle, Negros Navigation, as well as a number of substantial agricultural holdings, which the president deemed to problematic because the Lopez's were becoming too powerful.

President Magsaysay then offered the Central Azcurarera de Tarlac to Jose Cojuangco Sr.
through Ninoy Aquino Jr (Jose's son-in-law) in early 1957.
Ninoy Aquino was Magsaysay's political prodigy and personal assistant at that time, which helped the Cojuangcos in purchasing the CAT.
As agreed upon, the hacienda would be paid for in pesos, while the CAT would be paid for in US dollars.
The Philippine government aided the Cojuangcos in obtaining the loans needed to pay the price.

In 1957, the clan took control of the CAT and the hacienda through Manufacturer's Trust Co New York.
endorsed by the Banko Sentral ng Pilipinas (BSP) as well as Government System Insurance Service (GSIS).
The BSP then approved the loan in August 1957 under two conditions, one of which states that the CAT be bought together with Hacienda Luisita and that the hacienda shall be distributed to farmers under the Magsaysay's social justice program.
The government then authorized a P 5.9 million loan from GSIS which was approved in November 1957.
The Cojuangcos were given a ten-year window to distribute the lands to farmers as stipulated.
Finally on 1958, Jose Cojuangco Sr.
’s Tarlac Development Corporation (TADECO) became the new owner of Hacienda Luisita as well as the CAT.
Ninoy Aquino then became Luisita’s first administrator.
In 1957, the owners of the Tabacalera decided to sell Hacienda Luisita as well as the sugar mill, Central Azcurarera de Tarlac (CAT), because of the HUKBALAHAP rebels who were causing them problems. The CAT was supposed to be sold to the Lopez family of Iloilo but then the purchase was vetoed by President Ramon Magsaysay due to the clan owning multiple businesses such as Meralco, ABS-CBN, the Manila Chronicle, Negros Navigation, as well as a number of substantial agricultural holdings, which the president deemed to problematic because the Lopez's were becoming too powerful. 
President Magsaysay then offered the Central Azcurarera de Tarlac to Jose Cojuangco Sr. through Ninoy Aquino Jr (Jose's son-in-law) in early 1957. Ninoy Aquino was Magsaysay's political prodigy and personal assistant at that time, which helped the Cojuangcos in purchasing the CAT. As agreed upon, the hacienda would be paid for in pesos, while the CAT would be paid for in US dollars. The Philippine government aided the Cojuangcos in obtaining the loans needed to pay the price.
In 1957, the clan took control of the CAT and the hacienda through Manufacturer's Trust Co New York. endorsed by the Banko Sentral ng Pilipinas (BSP) as well as Government System Insurance Service (GSIS). The BSP then approved the loan in August 1957 under two conditions, one of which states that the CAT be bought together with Hacienda Luisita and that the hacienda shall be distributed to farmers under the Magsaysay's social justice program. The government then authorized a P 5.9 million loan from GSIS which was approved in November 1957. The Cojuangcos were given a ten-year window to distribute the lands to farmers as stipulated. Finally on 1958, Jose Cojuangco Sr.’s Tarlac Development Corporation (TADECO) became the new owner of Hacienda Luisita as well as the CAT. Ninoy Aquino then became Luisita’s first administrator.
Hacienda Luisita