MANILA, Philippines– The Philippine Competition Commission (PCC) approved the acquisition by AC Energy, the energy platform of the Ayala conglomerate, of the Phinma Group's power business.
In a decision issued last Thursday, April 11, and released on Monday, April 15, the PCC approved AC Energy's acquisition of the shares of stock of Phinma Corporation and Philippine Investment Management in Phinma Energy Corporation (PHEN), and a subscription by AC Energy to new common shares in PHEN.
The deal results in AC Energy owning 68.5% of PHEN's outstanding capital stock.
"PCC found no competition issues arising from the transaction since the competitive constraints remain from other players in the markets for power generation for bilateral contracts and the provision of Retail Electricity Supply services in Luzon and Visayas," the antitrust body said.
The PCC also said the deal does not substantially increase the likelihood of the power companies engaging in anti-competitive coordinated behavior with other power generators.
AC Energy has over $1 billion of invested and committed equity in renewable and thermal energy in the country and around the region. The company aims to develop 5 gigawatts of attributable capacity and generate at least 50% of energy from renewables by 2025.
On the other hand, the Phinma Group has a diversified portfolio which includes energy, education, housing, construction materials, and hotels, through its two main holding firms Phinma Incorporated and Phinma Corporation.
Meanwhile, the PCC also approved the acquisition by Longview Aircraft Company of Canada Limited of the Q Series aircraft program from Bombardier Incorporated.
The PCC said it quickly approved the transaction, as both aircraft firms have limited presence in the Philippines.
"PCC also found there is no existing overlapping line of businesses and vertical relationship between the companies and there is no sufficient evidence to show that the parties will have potential overlapping lines of business or vertical relationship," the commission said.
To date, the PCC has received 179 merger transactions by local and international companies and approved 169 of them. These have a combined worth of P2.83 trillion in terms of transaction value. – Rappler.com