PCC offers faster review for certain M&As

Philippine Competition Commission Chairman Arsenio Balisacan (File photo by LITO TECSON / Cebu Daily News)

MANILA, Philippines — The Philippine Competition Commission (PCC) will start offering next month a fast-tracked process that will cut by half the initial review time for certain mergers and acquisitions.

In a statement on Tuesday, the PCC said that it had set down the rules for an expedited review process for transactions that would be less likely to substantially prevent, lessen, or restrict competition.

This will cut the review time for the first phase of the review from 30 calendar days to 15 calendar days, even though the current time is already considered among the shortest review periods in the world

“Every merger review employs different levels of technical expertise and resources. The expedited review of mergers that are less likely to pose competition issues will lead to more efficient use of Commission resources towards the implementation of a holistic merger control regime,” PCC Chair Arsenio M. Balisacan said.

Only certain types of transactions may qualify for this. Among them are global transactions wherein both the acquired and acquiring entities are both foreign players.

In such transactions, the firms may have subsidiaries in the Philippines that manufacture or assemble their products — 95 percent of which should be exported.

Moreover, parties with “no overlaps” in their businesses could also apply for the fast-tracked review.

According to the PCC, the faster process will cover transactions wherein the global deal involves companies with “negligible or limited presence” in the Philippines.

Lastly, the PCC said joint ventures for real estate projects could also qualify, as long as they would be “formed purely for the construction and development of a residential and/or commercial real estate development project.”

“The PCC recognizes that a strong and vibrant economy stimulates firms’ appetite for business consolidation, corporate takeovers, and market expansion. The expedited merger review is a testament of PCC’s commitment to be efficient in the review of transactions deemed less likely to pose competition concerns,” Balisacan said.

(Editor: Alexander T. Magno)