The Philippine Competition Commission (PCC) said it has approved the acquisition by circuit board-maker Mikuni Toyo Co. Ltd. of ATM module assembler Hitachi Terminals Mechatronics Philippines Corp.
In a Commission decision issued December 10, the competition regulator said the acquisition is “unlikely to result to substantial lessening of competition.”
“Both firms were found to produce different electronic products, used for varying applications, thus no horizontal overlaps between the products of Mikuni Toyo and Hitachi in the Philippines. With no direct relation of products between the firms, no vertical overlaps also exist as neither parties’ products are considered as inputs for the other,” it said.
“Moreover, parties operate only as manufacturers or assemblers of their respective products, all of which are exported to their foreign parent entities and third parties outside of the Philippines,” PCC added.
Mikuni Toyo produces and assembles parts for various products, specializing in electronic boards in air-conditioning units, elevators, remote engine starters and security systems in Batangas.
On the other hand, Hitachi manufactures and assembles in Subic components such as card readers, and banknote/coin cassettes for ATM machines which are all exported to Japan.
The acquisition is part of Mikuni Toyo’s bid to expand its portfolio and increase its presence in the manufacturing and assembly business for new customers in Subic. The buyout is considered due to Hitachi’s plan to streamline its production sites to optimize global production strategy.