Antitrust body green-lights Aboitiz Power’s $579-M deal with Ayala unit

The country’s antitrust body approved Aboitiz Power Corp.’s $579.2-million purchase of shares in AA Thermal Inc. from an affiliate of the Ayala group.

In a two-page decision issued on Feb. 28, the Philippine Competition Commission (PCC) said it believed the transaction would not substantially affect competition in the relevant markets for power generation and retail electricity supply in Luzon and the Visayas.

The regulator noted AboitizPower was acquiring only a minority stake, or 49 percent, in AA Thermal. It also noted there would be no change of control in the operating companies, GNPower Mariveles Coal Plant Ltd. Co. and GNPower Dinginin Ltd. Co.

“There exists sufficient post-transaction competitive constrains from other power generation and retail electricity suppliers,” the PCC said.

AboitizPower said the acquisition was in line with its goal of building a portfolio of 4,000 megawatts of net attributable capacity by 2020 through a “balanced mix” strategy.

In September 2018,  AboitizPower entered into a share purchase agreement with Arlington Mariveles Netherlands Holding BV, an affiliate of Ayala group’s AC Energy Inc., related to a 49-percent voting interest and 60-percent economic interest in AA Thermal.

AA Thermal has limited partnership interests in GNPower Mariveles Coal Plant, the owner and operator of a coal plant in Mariveles, Bataan, with twin 316-MW generators.

AA Thermal also has interests in GNPower Dinginin, developer and owner of a critical coal plant project in Dinginin, Bataan, which involves the installation of two generators with 668-MW capacity each.

The Mariveles project has been operating since 2013, while the first unit of the Dinginin project is scheduled to go online sometime this year.

The agreement will raise AboitizPower’s beneficial ownership in the Mariveles project to 78.325 percent, and in the Dinginin project to 70 percent. —RONNEL W. DOMINGO