Business and Economy
Mergers, acquisition deals reach P2-T mark
FILE: Seal of the Philippine Competition Commission (PCC) (Photo: Philippine Competition Commission – Philippine Competition Commission, Public Domain)
MANILA —The Philippine Competition Commission (PCC) received notices of mergers and acquisitions (M&A) amounting to PHP2 trillion as of December 8.
During a media seminar of PCC Monday, the Commission’s Merger and Acquisition Office head Lianne Ivy Medina said the notices came from 124 transactions.
Medina said the Rules on Merger Procedure took effect last Friday after the PCC published the document last November 23.
Under the implementing rules and regulations (IRR) of the Philippine Competition Act, M&A transactions exceeding the PHP1-billion threshold shall be notified to the PCC.
The Rules on Merger Procedure showed that the notification period is within 30 days from signing of definitive agreements but prior to any acts of consummation.
Parties which failed to notify the PCC within the prescribed period but prior to consummation will be slapped with fine equivalent to half of 1 percent of 1 percent of the value of transaction, but not exceeding PHP2 million.
On the other hand, entities which failed to notify the PCC and consummated the deal in whole or in part will be considered void and will be subjected to fine of 1 to 5 percent of the value of transaction.
According to the Commission, about less than one percent of firms or at most 1,500 companies based on their assets, are subject to the PHP1-billion threshold for M&A notification. (PNA)
