PCC evaluating 8 merger deals valued at P204B

THE Philippine Competition Commission (PCC) said it is currently reviewing eight merger and acquisition (M&A) transactions worth a combined P204 billion.

Three of the M&A transactions involve finance and insurance companies; two are in the energy industry; two are involved in wholesale and retail; and one is a real estate deal.

PCC Chairman Michael G. Aguinaldo said on the sidelines of a briefing on Tuesday that businesses are constantly considering ways to grow their footprint.

“If you look at it from a business perspective, they always look for instances where they can expand… And sometimes consolidation actually helps,” he said.

He said the pending M&A transactions involves a liquefied natural gas (LNG) project in Ilijan, Batangas.

“I think maybe by the end of the month or the first two weeks of November, it should be resolved,” he added.

In March, Meralco PowerGen Corp. (MGen) entered into an investment agreement with Aboitiz Power Corp. subsidiary Therma NatGas Power, to take 60% and 40% stakes, respectively, in Chromite Gas Holdings, Inc.

Last month, MGen, the power generation subsidiary of Manila Electric Co. (Meralco), said it expects to finalize the financial arrangements for the project by September.

Chromite Gas plans to invest in two gas-fired power plants owned by San Miguel Global Power Holdings Corp. (SMGP): the 1,278-megawatt (MW) Ilijan power plant and a new 1,320-MW combined power facility.

MGen and AboitizPower signed a $3.3-billion deal with SMGP to launch an integrated LNG facility in Batangas.

In terms of pending cases, PCC Enforcement Office Director Christian Loren B. De Los Santos said the review of a pharmaceutical-industry deal has been closed.

“We recommended policy measures to the Department of Health, and we did not find any violations,” Mr. De Los Santos said, adding that deals involving agriculture and insurance companies is currently awaiting adjudication.

He said the insurance case required input from many respondents, leading to delays.

“But we are targeting to finish all of them by the end of the year,” Mr. Aguinaldo said.

Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Justine Irish D. Tabile