The Philippine Competition Commission (PCC) recently approved the proposed acquisition by Japan-based INFRONEER Holdings, Inc. of all shares in Sumitomo Mitsui Construction Co., Ltd., after completing its review on July 29, 2025.
INFRONEER intends to acquire Sumitomo through a public takeover bid and make it a wholly-owned subsidiary. The Japanese company currently has no operations in the Philippines.
It provides infrastructure services such as planning, design, construction, operations, and maintenance, while its subsidiaries engage in construction, paving, and sales of construction machinery.
Sumitomo, however, has a local presence through its Manila Branch and SMCC Philippines, Inc. Its Manila Branch undertakes infrastructure projects funded through official development assistance (ODA) from the Government of Japan.
The PCC found no horizontal overlaps, since the two firms do not operate in the same business lines, nor vertical relationships, such as one supplying goods or services to the other.
The Commission concluded that the transaction is unlikely to lessen competition in the local construction and infrastructure sector substantially since INFRONEER lacks direct construction operations in the Philippines.
The decision forms part of the PCC’s mandate to ensure that mergers and acquisitions do not stifle competition, limit consumer choice, or hinder innovation in Philippine markets.
Under the Philippine Competition Act, the PCC also reviews transactions involving foreign entities if these meet the notification thresholds. — Malaya Business News Team
