PCC approves Robinsons Land-Shang Properties joint venture

The Philippine Competition Commission (PCC) said Wednesday it has approved the joint venture between Robinsons Land Corp. and Shang Properties Inc. to develop a property in Bonifacio Global City (BGC) in Taguig City.
 
Citing a decision signed on March 20, the antitrust watchdog said its Mergers and Acquisitions Office (MAO) found that the transaction between Robinsons Land and Shang Properties does not result in substantial lessening of competition.
 
“There are enough existing competitive constraints on the parties after the transaction,” the decision read.
 
 “There is no increased ability, nor incentive, to engage in input foreclosure or customer foreclosure post-transaction,” it said.

Gokongwei-led Robinsons Land and Shang Properties are going to develop a 9,118-square meter property at McKinley Parkway, corner 5th Avenue in BGC.

The development covers two luxury residential condominiums, with the potential of converting a portion of the development into serviced apartments and commercial spaces.
 
Robinsons Land and Shang Properties have agreed to subscribe to shares of stock of the joint venture company, which will result in each party owning 50 percent of the outstanding stock of the joint venture firm.

Both parties will extend shareholder advances at fair and commercial rates comparable to loans extended by third party banks and financial institutions to the joint venture company in equal amounts.

Robinsons Land is a publicly-listed company that operates as the real estate investment arm of JG Summit Holdings Inc.

Shang Properties is a publicly listed real estate property development company engaged in hotels, commercial and office space leasing, development and sale of luxury residential condominiums, and property management.
       
PCC is mandated under the Philippine Competition Act to review mergers, acquisitions and joint ventures of firms across all sectors, that meet the threshold, currently at P2 billion, to ensure the deals will not harm the interest of consumers. —VDS, GMA News