Chelsea Logistics says PCC won’t take further action on acquisition deal with Trans-Asia

Antitrust watchdog Philippine Competition Commission (PCC) is no longer taking further action on Chelsea Logistics Holdings Corp.’s plan to acquire some 2 million common shares of Trans-Asia Shipping Lines Inc., but on certain conditions.

In a regulatory filing submitted by Chelsea Corporate Secretary Ma. Henedina San Juan on Wednesday, the company said the PCC decided not to take further action on the planned acquisition. The decision was dated January 11, 2019.

Trans-Asia is a Cebu-based company involved in cargo handling,  while Chelsea is the primary holding company for the business interests of Davao-based businessman Dennis Uy.

The acquisition of Trans-Asia shares will push through, provided that certain conditions are met.

The PCC last year voided the share acquisition deal as the companies failed to notify the antitrust commission. Trans-Asia reported gross assets of P1.142 billion, breaching what was then the P1-billion threshold for compulsory notification of mergers and acquisitions.

GMA News Online contacted the PCC, but no response has been received as of this posting.

“Among the conditions in the Undertaking of the Company are its agreement to price monitoring of passenger and cargo rates,” Chelsea said in its filing.

The company also committed to submit semi-annual reports on all trips of passenger and cargo services in critical routes, explain all extraordinary rate increases, and maintain service quality of passenger and cargo routes based on customer satisfaction, which will be audited by a third party monitor.

Under the Philippine Competition Act (PCA), the PCC is mandated to review all business transactions valued at P2 billion to protect the market and prohibit anticompetitive conduct. —VDS, GMA News