PCC calls on UnionBank, Century Pacific to review acquisition deals

Antitrust watchdog Philippine Competition Commission (PCC) on Tuesday said it has yet to receive the notification submissions regarding two major business transactions earlier announced by firms.

In a statement, the PCC said it has yet to receive the notification submissions of the Union Bank of the Philippines regarding its takeover of American banking giant Citigroup Inc.’s consumer banking business, and Century Pacific Food Inc.’s acquisition of household legacy brand Ligo

“Given the P50-billion thresholds qualification, the parties are encouraged to conduct due diligence to check if they meet the thresholds for compulsory notification, or to steer clear of any competition issues by undergoing voluntary notification in case they do not meet the thresholds,” the statement read.

The PCC in October 2020 released new rules in line with the Bayanihan to Recover as One Act (Bayanihan 2), which raised the threshold of P50 billion. It also barred the PCC from conducting a motu proprio investigation on transactions valued less than the threshold.

Under its mandate, the antitrust commission is tasked to review business deals to ensure that market competition remains healthy, and prevent negative impacts of mergers and acquisitions.

The PCC on Tuesday called on the concerned parties to file their notifications before consummating the deals, noting that it has waived the usual notification period of 30 days within signing of the definitive agreement amid the COVID-19 pandemic.

“Transactions of this nature may very well indicate the outset for economic recovery or post-pandemic restructuring,” the PCC said.

“While change of ownership of well-known brands means efficiency or expansion for former competitors into partners, this also means consumers may be faced with fewer choices and possible changes of price points,” it added.

Shares in Union Bank of the Philippines closed Tuesday down P0.50 or 0.49% to P101.80 apiece, while those in Century Pacific Food gained P0.45 or 1.63% to P28.00 apiece.—AOL, GMA News