PCC OKs mergers in property, power

MANILA, Philippines — The Philippine Competition Commission (PCC) has approved two joint venture transactions, one between Ayala Land Inc. (ALI) and Royal Asia Land Inc., and another between Markham Resources Corp. and Alternergy Mini Hydro Holdings Corp.

In decisions signed on Feb. 20, the PCC said its Mergers and Acquisitions Office found that both transactions do not result in substantial lessening of competition in their respective relevant markets.

ALI and Royal Asia Land are setting up a joint venture to acquire, own, and develop into a 936-hectare mixed-use project with commercial and residential components in Silang and Carmona, towns in Cavite.

ALI is a publicly listed corporation which serves as the property arm of the Ayala Group, while Royal Asia Land is incorporated to purchase, acquire, own, lease, sell and convey real properties and whose ultimate parent entity is PCO South Frontier Holdings Inc.

Both firms intend to subscribe to shares of the joint venture company, with each party owning 50 percent of the outstanding stock of the JV company.

“The transaction does not result in the substantial lessening of competition because it will not have a structural effect on the market,” the PCC said.

On the other hand, Markham Resources and Alternergy Mini Hydro Holdings have proposed a joint venture investment in Kiangan Mini Hydro Corp., Ibulao Mini Hydro Corp. and Lamut-Asipulo Mini Hydro Corp.

Markham is a Philippine company engaged in the development, construction, lease and operation of electricity generation and/or distribution and/or hydropower plants, while Alternergy is a Philippine holding company engaged in the sale, assignment, transfer, mortgage, pledge, exchange, or other disposition of real and personal property of every kind and description.

“The transaction also does not appear to create or strengthen the ability or incentive of the merged firm to engage in withholding capacity,” the PCC said.