THE Philippine Competition Commission (PCC) said it approved AC Energy, Inc.’s purchase of a majority stake in Phinma Energy Corp.
In a statement Monday, the anti-trust body said the transaction “do[es] not result in substantial lessening of competition in the markets where the companies operate.
“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,” according to the statement, which added that the commission’s decision was issued Thursday.
Under the deal, the Ayala-controlled energy firm will acquire the combined stake of Phinma Corp. and its parent Philippine Investment Management, (Phinma) Inc. in PHINMA Energy Corp.
This would increase AC Energy’s ownership of PHINMA Energy’s outstanding capital stock to 68.45%
Phinma Corp. owns 1,283,422,198 common shares of Phinma Energy, while Phinma, Inc. owns 1,233,642,502 shares.
A total of 2,632,000,000 new common shares of Phinma Energy will also be issued to AC Energy.
The PCC also said that “the transaction does not significantly strengthen the ability or incentive of the merged firm to engage in customer or input foreclosure.”
“Based on its merger review involving the power sector, PCC found that the transaction does not substantially increase the likelihood that the said power companies will engage in anti-competitive coordinated behavior with other power generators,” the statement read.
AC Energy is the energy unit of the Ayala Group.
The Phinma Group, through its two main holding companies — Phinma, Inc. and listed Phinma Corp. — is involved in energy, education, housing, construction materials, and hotels. — Janina C. Lim