The Philippine Competition Commission (PCC) has approved the acquisition by Japan Tobacco (Philippines) Inc. (JTPI) of Mighty Corp.
PCC found the transaction was not likely to result in anticompetitive effects in the market.
“There appears to be no ability nor incentive for the parties to engage in anti-competitive coordinated behavior,” PCC said. “Sufficient competitive constraints remain from other market participants after the sale.”
In the transaction, JTPI will own the sales and distribution network, manufacturing and equipment and inventories of Mighty while JT International SA (JTI), an affiliate of JTIP, will own the trademarks and associated intellectual property of Mighty and Wong Chu King Holdings Inc.
JTIP is a company engaged in the business of importation, manufacturing, distribution and marketing on wholesale basis of tobacco products while JTI SA is a global company engaged in the manufacture and sale of tobacco products.