The Philippine Competition Commission (PCC) targets to scale up its merger review activities after a surge in transactions in 2023 following the recovery of the economy from the pandemic, according to PCC chair Michael Aguinaldo.
In its annual report, the PCC said its Mergers and Acquisitions Office approved 24 notifications valued at P609 billion in transactions in 2023.
That is double than the P320 billion in 2022 when PCC only approved three transactions.
“We aim to scale up our merger review activities following an adjustment in the merger notification thresholds,” Aguinaldo said in the report.
Last year, M&As that breached a size of party (SoP) of P7 billion and a size of transaction (SoT) of P2.9 billion were required to be notified to the PCC for merger review.
But starting March 1, 2024, mergers and acquisitions (M&As) that exceed the thresholds for SOP was raised to P7. 8 billion and the SOT at P 3.2 billion .
Based on MAO records, real estate accounted for the bulk of transactions with seven notifications valued at P270.17 billion. Manufacturing followed with two transactions worth P105.27 billion.
Electricity, gas, steam, and air-conditioning supply had five notifications, P72.54 billion; information and communication, five, P 64.5 billion; administrative and support services, two, P36,75 billion; financial and insurance activities, one, P35.39 billion; wholesale and retail trade, one, P14,85 and; mining and quarrying, one, P10.47 billion.
The Commission’s merger review thresholds are reviewed annually and adjusted, if needed, to keep pace with the changes in the markets and to reflect the businesses’ real value over time, relative to the size of the economy.
As part of efforts to streamline the merger review process, the rehabilitation, operation, expansion, and transfer project of the Ninoy Aquino International Airport, a a major government infrastructure project, became the pilot for the PCC’s procedure exempting solicited projects undertaken through a public-private partnership (PPP) from compulsory merger notification.
In 2023, the Department of Transportation, in coordination with the Asian Development Bank and Manila International Airport Authority, sought the help of the PCC in securing a certificate of project exemption for the project.
