The Philippine Competition Commission (PCC) is expected to review more deals and to reach a higher number of transaction values this year as it resumes review of mergers and acquisitions (M&As) under lower and adjusted thresholds.
This as the PCC reported it P4.55 trillion worth of M&As in 2021.
The PCC resumes motu proprio review of M&As that can possibly be problematic when the two-year moratorium under the Bayanihan to Recover as One Act (Bayanihan 2) expires in September.
The merger notification thresholds of P50 billion for the size of person and size of transaction remain in force under Bayanihan 2 enacted by Congress in 2020.
Some of the biggest M&A notifications in 2021 include two real estate deals valued at P110 billion; one transaction in electricity, gas, steam and air conditioning supply, P95 billion and; another one in manufacturing, P8.56 billion.
Of the total transactions in 2021, manufacturing had the biggest transaction value with a sum of P1.51 trillion followed by financial and insurance, P719 billion; electricity, gas, steam and air-conditioning supply, P695 billion and real estate, P607 billion. These sectors have also the most number of frequency of transactions.
The PCC said as the country reels from the impact of the pandemic this year, it will focus competition analysis and enforcement on sectors considered essential during this recovery period: electronic commerce, health and pharmaceuticals, food and agriculture, energy and electricity, insurance, construction, water, and telecommunications.
Aside from ramping up its enforcement activities, PCC will further develop its bid-rigging screening tool in partnership with other agencies to enhance its ability to detect bid rigging in public procurement.
The Commission also said it will initiate market studies in the sectors of bus transport, telecommunications (e.g., internet service providers, wholesale broadband, and spectrum management), and water will be initiated. The PCC will also continue conducting competition impact assessments, focusing on the energy, food, and sports sectors.
