Grab to continue transition of Uber drivers amid PCC review on acquisition deal

Grab Holdings Inc. on Wednesday said it will continue to process the transition of drivers from Uber Technologies Inc. into its system while the Philippine Competition Commission (PCC) reviews the acquisition deal.

"(A)s PCC conducts its review, Grab will continue to put our utmost support to ensure full transition of accredited Uber drivers onto our platform," the company said in a statement.

This comes after the PCC on Tuesday formally launched a motu proprio review on the acquisition by Grab of the Southeast Asian business of Uber.

As a motu proprio case, the Grab-Uber deal can be reviewed by the PCC without any notification from the companies involved in mergers and acquisitions (M&A) that fall within the purview of the antitrust law.

Under the deal, Uber Technologies agreed to sell its Southeast Asian business to regional rival Grab, which would result in an operational merger in the Philippines.

For its part, the Philippine Competition Act (PCA), mandates the PCC to review all mergers and acquisitions worth P2 billion and above to weed out anti-competitive practices in the country.

While the PCC said the Grab-Uber deal was not within the review notification threshold, it said a review of the deal was necessary to ensure that there will be no adverse effects on the public.

"As the quasi-judicial body mandated to implement the national competition policy and to enforce the Philippine Competition Act or R.A.10667, we expected that the PCC would conduct a review of Grab’s acquisition of Uber assets to understand the impact to consumers and driver-partners," the PCC said.

"The PCC can expect Grab’s cooperation in this Motu Proprio review. We will prepare the necessary documents and share information required by the PCC, and will closely work with the Commission to address whatever questions and clarifications they may have," it added.

Under PCC's implementing rules and regulations, the review will take up to 30 days for the first phase. If needed, it will take another 60 days for the second phase review.

If no decision comes within the total 90-day period, the transaction would be deemed approved. —KG, GMA News