PSE, PDS union OKd

The Philippine Competition Commission (PCC) approved last month the unification of the Philippine Stock Exchange (PSE) and the Philippine Dealing System Holdings Corp. (PDS).

In a briefing yesterday, Commissioner Johannes Benjamin R. Bernabe said the PCC approved the merger on Nov. 29, but that the parties still needed to secure the approval of the Securities and Exchange Commission.

Bernabe called it a “unique” transaction.

“PSE is the only equity exchange platform that we have. On the other hand, PDS is also unique because it’s the only bond exchange platform that we have. Obviously, when these two merge, there would be some analysis required before the deal can be approved,” he said.

“It was deemed approved by the commission on the 29th of November,” he later added.

Earlier this year, the transaction was submitted for PCC review.

Only transactions that meet the P1 billion threshold need PCC approval.

There are two phases of the review. The first phase lasts a maximum of 30 days.

If the competition watchdog cannot conclude that there are no competition concerns within that period, the transaction enters a more detailed review under phase two.

The second phase has a maximum of 60 days.

However, Bernabe said that during the tailend of the first phase and nearing the start of the second phase, the parties involved decided to withdraw their notification to make further adjustments. They later refiled it.

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