Antitrust body starts reviewing Mighty Corp. asset sale to Japan Tobacco

The Philippine Competition Commission (PCC) has started reviewing the sale of Mighty Corporation assets Japan Tobacco International for P25 billion deal. 

The local cigarette maker will use the proceeds from the sale to settle its tax liabilities. But the government will only accept the full payment once the PCC approves the Mighty-JTI deal.

PCC chairperson Arsenio Balisacan told reporters in a briefing in Malacañang on Thursday that the transaction could be approved within 30 days if all the requirements are met.

"We are evaluating their compliance to the requirements at the moment. And as you know ... if there are no problems with the submission, approval can be as early as, you know, within the first 30 days upon completion of all the requirements," he said.

But if there are issues or additional concerns regarding data, the commission has 90 days to evaluate all the submissions, Balisacan noted.

In case the commission would not be able to come up with a decision within the prescribed, "the transaction is deemed approved," he added.

The PCC is tasked to review mergers and acquisition worth at least P1 billion.

Finance Secretary Carlos Dominguez noted that the Mighty Corp. tax settlement would be the largest sum of tax collection from a single taxpayer. — VDS, GMA News