The Philippine Competition Commission (PCC) will streamline the review process of certain mergers and acquisitions to facilitate transactions that are less likely to pose competition concerns.
In a notice, PCC said it is updating the PCC Rules on Expedited Merger Review to ensure the efficient use of the PCC’s limited resources.
These will facilitate the review of qualified mergers and acquisitions that are unlikely to substantially prevent, restrict, or lessen competition in their relevant markets.
The revised rules will supersede those which have been issued in 2019.
Qualified for expedited review are transactions where there are no horizontal overlaps or vertical relationships between the parties; the merger is between foreign entities whose presence in the Philippines is through subsidiaries that act merely as business conduits; the merger will result in the acquiring entity acquiring sole control of an entity over which it has joint control and; joint ventures formed primarily for the development of real estate.
Under the draft rules, PCC requires the parties to file a regular notification even if the transaction is qualified for Expedited Review, in case the transaction merits a full review to evaluate possible competition concerns.
PCC said notifying parties must submit their Expedited Review Notification Forms within 30 days after the signing of definitive agreements relating to the merger.
The PCC is seeking comments on the draft posted on its website.
