The Philippine Competition Commission (PCC) on Friday said it had started a more in-depth review of the proposed acquisition of payment systems provider Electronic Commerce Payments Inc. (ECPay) by Globe Fintech Innovations Inc. (Mynt), the operator of popular e-wallet GCash.
The PCC said they started a phase 2 review of the transaction that will result in Mynt acquiring 100 percent of the issued and outstanding share capital of ECPay, making the latter a wholly owned subsidiary of the former.
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“Following Phase 1 review, the PCC Mergers and Acquisitions Office identified potential competition concerns in several key markets, including payment services, aggregator services and merchant solutions,” the government’s antitrust body said in a statement.
“These concerns involve potential impacts on competition in retail and digital payment channels, such as “sari-sari” stores, retail outlets and online payment systems,” it added.
The PCC said they received the notification about the acquisition on April 23, 2024.
According to the PCC’s rules on merger procedures, a phase 1 review determines if a merger or acquisition is likely to give rise to competition concerns.
Meanwhile, a phase 2 determines whether the proposed merger or acquisition is likely to result in the substantial lessening of competition in the relevant market.
The PCC is mandated to review mergers and acquisitions under the Philippine Competition Act of 2015, ensuring that these types of deals do not lead to a substantial loss of competition in the local market that will harm consumer welfare.
In October 2023, Globe Telecom announced in a stock exchange filing the proposed sale of its 77 percent stake in ECPay to Mynt for P2.3 billion.
“Mynt’s acquisition of ECPay will enable more efficient and effective sharing of each other’s strengths and resources, thus creating a seamless and upgraded experience for their customers,” Globe Telecom chief executive officer and president Ernest Cu said in the filing.
Payment One Inc., ECPay’s minority stockholder, also joined the sale, according to Globe Telecom.
Mynt’s GCash currently has a user base of 94 million, with the company planning to expand to 10 more countries from its current 16 markets to reach more Filipinos overseas.