PCC OKs Philippine Veterans Bank’s P2.7B acquisition of UCPB Savings Bank

Philippine Veterans Bank has secured the clearance of antitrust watchdog Philippine Competition Commission (PCC) to acquire a 97.55% stake in UCPB Savings Bank Inc. for P2.7 billion, following its privatization as ordered by President Ferdinand “Bongbong” Marcos Jr.

The PCC said it determined that the transaction would not result in a substantial lessening of competition in the relevant markets, citing the difference in the segments they cater to.

“The Commission found no horizontal or vertical relationships between the Veterans Bank notifying group and UCPB Savings,” the PCC said in a statement released Tuesday.

It noted that the parties cater to different customer segments and operate under distinct banking classifications.

“Even under a broad market definition encompassing core banking services such as deposits and loans across all banking types, the transaction is unlikely to result in a substantial lessening of competition, given the parties’ small market shares and the presence of numerous competitors in each segment,” the PCC added.

Philippine Veterans Bank is a private commercial bank that offers services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange, and trust services. It also owns New Rural Bank of Agoncillo Inc. in Batangas.

UCPB Savings Bank, meanwhile, is a subsidiary of Land Bank of the Philippines, which provides deposit taking, loans, domestic fund transfers, and treasury services. Its privatization was approved by Marcos through a memorandum in August 2024.

Under Republic Act No. 10667 or 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. — JMA, GMA Integrated News