PCC rejects industry-based thresholds
Credit to Author: TYRONE JASPER C. PIAD| Date: Sun, 10 Mar 2019 16:20:12 +0000
Competition authorities are not keen on setting industry-specific compulsory merger and acquisition (M&A) notification thresholds.
“The very simple reason is these firms, industries are very dynamic. Firms involved are also covering several industries, several conglomerates,” Philippine Competition Commission (PCC) Chairman Arsenio Balisacan told reporters last week.
As the ultimate parent entity will likely be handling varied businesses, “ anong industry ang pi-pickup-in mo as the representation … (So which industry will you choose to represent the ultimate parent) It opens you to all kinds of potential discretionary [actions],” he explained.
Other industries, the PCC chief added, are too small to be considered as a relevant market.
A legislator last year urged the antitrust watchdog to substantially increase its M&A review thresholds and also consider setting industry-specific limits. At that time, Balisacan said the PCC would be looking into the benchmarking proposal.
Under the Philippine Competition Act, the PCC should be notified about M&A deals that could have a significant market impact.
Last month, the “size of transaction” and “size of party” — the latter referring to the revenues/assets of the ultimate parent of at least one of the firms involved — limits were raised to P2.2 billion and P5.6 billion, respectively, from P2 billion and P5 billion.
The adjustments, which took into account the country’s economic growth, were the second since the law took effect in 2016.
The post PCC rejects industry-based thresholds appeared first on The Manila Times Online.