The Philippine Competition Commission (PCC) has begun an in-depth review of the proposed acquisition by a Ayala company of a substantial stake in a Northern Luzon drugstore chain after an initial review pointed to potential competition concerns.
AHCHI Pharma Ventures Inc. (Ayala Pharma Ventures), which operates Generika Drugstore, and Joleco Resources Inc., which operates St. Joseph Drugstore, notified PCC last January 13 of their proposed transaction, which would involve Ayala Pharma Ventures acquiring a 49-percent stake in Joleco Resources.
An initial data-gathering by PCC Mergers and Acquisitions Office under its Phase 1 review pointed to potential competition concerns in the retail sale of pharmaceutical and non-pharmaceutical products across 28 localities in Northern Luzon.
These localities span the Ilocos Region and Cordillera Administrative Region.
Given the above, the MAO recommended opening a Phase 2 review, which entails conducting a more detailed and extensive assessment on whether the transaction may lead to a substantial lessening of competition in the relevant markets.
