Consunji-led DMC gets approval to acquire PLDT’s Smart Tower

Consunji-led DMC Urban Property Developers Inc. has secured the go signal from the Philippine Competition Commission (PCC) to acquire the 36-storey Smart Tower in Makati City.

In its decision dated September 3, 2020, the PCC approved DMC Urban's acquisition of Smart Tower, which is owned by Pangilinan-led PLDT Inc.

"[T]he proposed acquisition by DMC-UPDI of assets in PLDT will not likely result in substantial lessening of competition due to existence of sufficient competitive constraints exerted by other players in the market for lease of office spaces in Makati and Bonifacio Global City," the decision read.

Under the Philippine Competition Act (PCA), the PCC is mandated to review mergers and acquisitions to ensure that such deals do not harm the interest of consumers.

The decision was signed by PCC chairman Arsenio Balisacan, and commissioners Johannes Benjamin Bernabe, Amabelle Asuncion, Macario de Claro, Jr., and Emerson Aquende.

While the companies have yet to disclose the transaction amount, PLDT already earlier announced the sale of the property estimated at P5 billion.

The sale involves the acquisition of two parcels of land with an aggregate area of approximately 2,400 square meters, together with improvements consisting of two buildings—Smart Tower I and II—on Ayala Avenue in Makati City.

PLDT chief financial officer Annabelle Chua in March said the sale comes with a leaseback agreement. — BM, GMA News