PCC OKs Aramco-Unioil deal

Aramco Asia Singapore Pte. Ltd., the wholly-owned affiliate of the Saudi Arabian oil company, has secured the clearance from the Philippine Competition Commission (PCC) to proceed with its acquisition of 25% interest each in Unioil Petroleum Philippines Inc. and Unioil Energy Pte. Ltd.

In a statement released Tuesday, the PCC said it determined that the transaction would “not likely” result in a substantial lessening of competition in the relevant markets, citing the limited market shares and the “substantial competition” from other established players.

“(T)he entry of new players is likely, timely, and sufficient due to low barriers to entry,” the PCC said, as the Department of Energy (DOE) in 2022 amended the implementing rules and regulations (IRR) of the Renewable Energy Act to allow the entry of foreign investors or companies.

According to the PCC, its Mergers and Acquisitions Office (MAO) started the Phase 1 review of the proposed transaction on June 13, 2025, taking into consideration the relevant markets for the nationwide non-retail supply of automotive and industrial coolants.

It also factored in the global ex-refinery and non-retail supply of diesel and gasoline, and the nationwide supply of ethanol as an input for gasoline in the nationwide non-retail market.

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.

To recall, Unioil in February said it entered into definitive agreements for a possible acquisition with Aramco, one of the world’s largest petroleum and integrated energy companies.

“We are delighted with this new partnership with Aramco, which represents a major milestone in Unioil’s 58-year history. We are confident that this will equip ourselves in accelerating our growth and development, further innovate, and strengthen our position as a leader in the wholesale and retail fuels market,” Unioil chief executive officer Janice Co Roxas-Chua said then.

“Our international expansion aims to capture additional value and enhance our participation in vibrant economies, in collaboration with established partners,” Aramco executive vice president of products and customers Yasser Mufti said. — RSJ, GMA Integrated News