PCC reminds San Miguel, Holcim of merger notification requirement

The Philippine Competition Commission (PCC) on Friday reminded San Miguel Corp. and Holcim Philippines Inc. of the requirement to notify the antitrust body of their planned merger.

In a statement, the PCC said it has not yet received the notification by San Miguel and Holcim Philippines for mandatory merger review.

"PCC reminds merging firms that meet the notification thresholds to notify the Commission of their transaction within 30 days from signing of their definitive agreement," the antitrust watchdog said.

Early this month, San Miguel entered into a definitive agreement through its wholly-owned subsidiary, First Stronghold Cement Industries Inc., with companies controlled by LafargeHolcim Ltd. for the purchase 5,531,566,062 common shares or 85.7 percent equity interest in cement maker Holcim Philippines for $2.15 billion.

The closing of the transaction is subject to the approval of the PCC.

"As the country’s antitrust body, the PCC is mandated under the Philippine Competition Act (PCA) to review mergers and acquisitions to ensure that these deals will not harm the interest of consumers," it said.

"The merger-specific review of the SMC-HPI transaction is different from the ongoing investigation on possible cartel in the cement industry. Unlike cartel investigations which look into past conduct, merger reviews are carried out to determine any competition concerns before the transaction is consummated to prevent potential damage to consumers," it added.

The PCC said it balances the concerns of the businesses and the public when reviewing mergers and acquisitions, making sure they will not lessen, restrict or prevent competition for the benefit of Filipino consumers.  

"With the PCA and the rules of merger procedure in place, every Mergers and Acquisitions notification will be evaluated in a fair and transparent manner," the PCC said.

"If there is nothing anticompetitive in a transaction, then PCC would approve it in a timely manner," it said.

If competition issues arise, the PCC said the law allows for possible remedies to address the concerns.

"As such, any expression of speculation on how the merger review will fare is discouraged. Parties should instead comply and submit notification requirements in accordance with the rules," it said. —LDF, GMA News