The Philippine Competition Commission (PCC) said it has cleared the proposed merger between the subsidiaries of Mitsui & Co., Ltd. (Mitsui) and KDDI Corp. (KDDI).
The Commission said that it found that the merger between Mitsui subsidiary Relia, Inc. and KDDI subsidiary KDDI Evolva, KDDI Evolva as the surviving entity, “will not likely result in a substantial lessening, restriction, or prevention of competition in the relevant market.”
Mitsui’s Relia specializes in business process outsourcing services, while KDDI is in the business of offering ICT solutions.
“The joint venture aims to combine Mitsui’s strategic capabilities with KDDI’s telecommunications expertise, focusing on digital solutions and innovation in areas such as contact center services and IT solutions through KDDI Evolva, the resulting entity,” the PCC said.
The agency said despite the merger, there remains a “significant competitive pressure from numerous competitors in the market.”
“Customers still have the option to switch to other competitors that can provide the same or similar services,” it also said, while also noting that there are low barriers to entry for new businesses or expansion by existing players in the market.
“The Commission identified the provision of Secure Access Service Edge (SASE) for integrated network solutions on a global scale as the relevant market being assessed in the transaction. As a modern way of keeping networks safe and connected, it uses security tools like firewalls and networking technology to let people access applications and data securely from anywhere on any device,” the PCC said.
“The Commission noted that while there is a vertical relationship between the parties involving the resale of SASE licenses, this relationship does not significantly impact competition due to the presence of alternative providers and services in the market,” it added.
