PCC okays 2 joint ventures

February 22, 2018 - 6:04 PM
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PCC chair Arsenio Balisacan. FILE PHOTO FROM WWW. NEDA.GOV.PH

MANILA – The Philippine Competition Commission (PCC) has approved two joint ventures in sectors of real estate and power.

In a statement Thursday, PCC said it cleared the joint venture deals between Ayala Land, Inc. and Royal Asia Land, Inc. as well as the transaction between Markham Resources Corp. and Alternergy Mini Hydro Holdings Corp.

“In the Commission Decisions signed on February 20, the Mergers and Acquisitions Office (MAO) of the PCC found that both transactions do not result in substantial lessening of competition in their respective relevant markets,” the antitrust body stated.

The joint venture between Ayala Land and Royal Land would involve the development of a 936-hectare property into a mixed-use project with commercial and residential components in Silang and Carmona, Cavite.

Under their deal, both firms have 50-percent share on the outstanding stock of the joint venture company.

On the other hand, Markham Resources and Alternergy aim to have joint venture investment in run-of-river mini hydro projects in Ifugao province such as Kiangan Mini Hydro Corporation, Ibulao Mini Hydro Corporation, and Lamut-Asipulo Mini Hydro Corporation.

“The transaction also does not appear to create or strengthen the ability or incentive of the merged firm to engage in withholding capacity,” the Commission’s decision read.

Under Republic Act 10667 or the Philippine Competition Act (PCA), business entities with merger and acquisition transactions meeting the PHP1-billion threshold shall notify the PCC of their deal.

On Wednesday, PCC Chairman Arsenio Balisacan said there is a move to adjust the PHP1-billion notification threshold in the PCC.

Balisacan expected the proposal to be forwarded in the Commission in the first half of the year.

The PCA also gives power to the PCC to determine the threshold for mergers and acquisitions notifications.

The two-year old antitrust body has received a total of 151 notifications with transactions valuing at PHP2.25 trillion pesos.