The antitrust body has cleared the bid of International Container Terminal Services, Inc. (ICTSI) to be the single biggest stakeholder in the local operator of North Harbor, after existing rules were found enough to keep the deal from being anticompetitive.
The Philippine Competition Commission (PCC) has approved ICTSI’s plan to get more shares in Manila North Harbour Port, Inc. (MNHPI) from Harbour Centre Port Terminal, Inc.
This paves the way for the billionaire Enrique Razon-led company to be the single biggest stakeholder in MNHPI, since the approval will allow ICTSI to increase its share in the latter from 34.83 percent to 50 percent.
“The transaction approval was hinged on the concession agreements with the PPA (Philippine Ports Authority) and the current regulatory regime,” said PCC Chair Arsenio Balisacan.
PCC’s concerns revolve around the implications to the Manila International Container Terminal (MICT), which ITCSI directly operates and manages. MICT is one of the three terminals in the port.
The Manila North Harbour Port Terminal (North Harbour), meanwhile, is being operated by MNHPI.
The antitrust body said it wanted to see if ICTSI’s acquisition would have stopped the potential entry of a provider of services for foreign containerized cargoes in the Port of Manila.
This, in essence, would have been the case without the existing regulatory barriers.
However, PCC said that the concession agreements entered into by MICT and North Harbour with the PPA restricted them from servicing foreign cargo.
Given this, PCC said it found that ICTSI’s MNHPI “will not lead to a loss of potential competition.”