PCC clears 3 merger and acquisition deals in property, automaking

MANILA, Philippines — The Philippine Competition Commission (PCC) has approved three merger and acquisition (M&A) transactions involving the real estate and auto manufacturing sectors.

In separate decisions dated July 24, the PCC cleared the acquisition by Ayala Land unit Alveo Land Corp. of properties from Antel Land Holdings Inc. in Makati City, the joint venture between Century Properties Group Inc. and Mitsubishi Corp., and the purchase by Aisin Seiki Co. Ltd. of shares in Toyota Autoparts Philippines Inc. (TAP).

The first transaction involves the acquisition by Alveo of Antel’s 1.3-hectare land and assets, including A. Venue Mall, in Makati City.

PCC said the Alveo-Antel transaction is not seen to result in substantial lessening of competition in the market of medium-cost residential condominiums in Makati and Bonifacio Global City in Taguig. 

The PCC’s review also found there are sufficient number of competitors in the market and there is no reason to foreclose the property to be acquired.

Alveo, a wholly-owned subsidiary of Ayala Land Inc., is a real estate firm primarily engaged in planning and development of residential, business, commercial, and leisure real estate properties.

Antel, on the other hand, is engaged in purchasing, leasing, selling and development of real estate properties.

As for the Century Property-Mitsubishi joint venture, the firms agreed to develop, construct, and sell residential properties on parcels of land in Tanza, Cavite.

Following PCC’s clearance, both firms will invest through the purchase and subscription of shares in a new company, PHirst Park Homes, which will be incorporated with the Securities and Exchange Commission.

PCC said there are no competition concerns in the  transaction given numerous firms remain engaged in the residential real estate development within the identified geographic market. 

“These competitors are seen to exert competitive pressures on the parties after the transaction,” PCC said.

Century Properties is involved in mixed-use developments, while Mitsubishi has a diversified portfolio of businesses including development, infrastructure, and technology.     

For the last transaction, Aisin Seiki will acquire additional shares in TAP from Toyota Motor Corp. in the Philippines.

The acquisition will make Aisin Seiki a majority shareholder of TAP.

PCC’s analysis of the transaction found no substantial lessening of competition in the  car parts market as the production and sale of manual transmission components to TAP will be the same before and after the deal.

Aisin and its subsidiaries are engaged in the manufacture and sales of automotive parts, lifestyle- and energy-related products, and wellness-related products. 

Toyota and its subsidiaries, meanwhile, are engaged in the manufacture and sale of automobiles, financial services, and other areas of business, including housing and information technology.

Under the Philippine Competition Act, the PCC is mandated to review M&As to ensure the transactions will not lead to reduction or lack of competition in the market, or harm consumers.

To date, there have been 151 merger filings by local and international companies at the PCC worth a combined P2.36 trillion in terms of transaction value. 

The three newly approved transactions bring the cleared PCC mergers and acquisitions tally to 143 deals.