Three M&A deals approved by PCC
The Philippine Competition Commission (PCC) recently approved three merger and acquisition transactions in the real estate, housing, and manufacturing markets.
In commission decisions dated July 24, the antitrust body approved the acquisition by Alveo Land Corp. of properties from Antel Land Holdings Inc. in Makati City, a joint venture between Century Properties Group Inc. and Mitsubishi Corp, and the acquisition by Aisin Seiki Co. Ltd. of additional shares in Toyota Autoparts Philippines, Inc. (TAP).
Under the Alveo-Antel transaction, Ayala-owned Alveo wants to acquire Antel’s 1.3-hectare land and assets, including A.Venue Mall, in Makati City.
The PCC said the transaction would not result in substantial lessening of competition in the medium-cost residential condominiums market in Makati and Bonifacio Global City.
“The review also found that there were sufficient number of competitors in the said market and that there was no ability nor incentive for Alveo to foreclose the property to be acquired,” it added.
For the Century Property-Mitsubishi joint venture, Century Property and Mitsubishi agreed to engage in the development, construction and sale of residential properties on parcels of land in Tanza, Cavite.
“The parties stand to invest through the purchase and subscription of shares in a new company, reported as PHirst Park Homes, which will be incorporated with the Securities and Exchange Commission given PCC’s clearance,” the PCC noted.
The commission also found no competition concerns in the transaction as numerous firms remain engaged in residential real estate development in the area.
“These competitors are seen to exert competitive pressures on the parties after the transaction,” it said.
Under the third deal, Aisin Seiki is looking to become the majority shareholder of TAP by buying shares from Toyota Motor Corporation (TMC) in the Philippines.
“PCC found no substantial lessening of competition in the relevant car parts market since the conditions of production and sale of manual transmission components to TAP will be the same before and after the transaction,” the PCC said.
Under the Philippine Competition Act, the PCC is mandated to review mergers and acquisitions to ensure that these will not lessen or eliminate competition in their relevant markets.
The PCC said that to date, it had received a total of 151 merger filings with a combined P2.36 trillion in terms of transaction value. Of the total, 43 involve global deals. The three latest approved transactions brought the cleared PCC merger and acquisitions count to 143 deals.
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