The Philippine Competition Commission (PCC) has approved the planned sale of BDO Leasing and Finance Inc. (BLFI) by BDO Unibank, noting that it sees no competition-related problem with the transaction.
The transaction involves the acquisition a group of investors, composed of real estate businessmen Vittorio P. Lim, Victor Y. Lim, Jr., and Luis N. Yu, Jr., of 88.84 percent of BLFI, owned by BDO and its subsidiary BDO Capital & Investment Corp. (BDO Capital).
In the PCC’s decision, it noted its mergers and acquisitions office’s (MAO) position that the transaction does not result in substantial lessening of competition in their relevant markets.
“There are no horizontal and vertical overlaps between the parties’ respective business activities, pre-and post-transaction,” it said.
MAO found that the sale of BLFI is part of the BDO group’s restructuring in response to new regulations affecting lease transactions.
Sellers BDO Unibank and BDO Capital are a full-service universal bank and investment house, respectively, in the Philippines. BDO Unibank’s operational portfolio includes corporate and consumer lending, deposit-taking, credit cards, foreign exchange, remittances, brokering, trust and investments, and cash management services; while BDO Capital is engaged in the business of securities trading and underwriting, loan syndication, debt and equity placement, and financial advisory.
The acquired entity, BDO Leasing and Finance, Inc., is a publicly-listed company engaged in direct leases, real estate leases, as well as sale and leasebacks in the Philippines.
PCC, the country’s anti-trust body, is mandated under the Philippine Competition Act to review big-ticket mergers and acquisitions, including joint ventures, that meet the thresholds to ensure that such movements in the market will not harm the interest of consumers.
