PCC clears Kepco’s 38% equity stake in Solar Philippines

MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the acquisition of Kepco Philippines Holdings Inc. of shares in Solar Philippines Calatagan Corp.

In a Dec. 4 decision the Mergers and Acquisitions Office of the PCC said the transaction would not lead to reduced competition in the power generation market.

 “While both are present in power market generation, they appear not to compete either in the Wholesale Electric Spot Market or in the market for bilateral contracts, and thus do not compete in the same relevant market,” the PCC said.

The proposed transaction involves Kepco’s acquisition of a 38 percent equity in Solar Philippines.

Kepco is a wholly-owned unit of Korea Electric Power Corp. engaged in the business of power generation in the Philippines.

Solar Philippines, meanwhile, is a local firm which owns and operates a 63.3-megawatt solar generating unit in Calatagan, Batangas.

Under the Philippine Competition Act, the PCC has the authority to review mergers and acquisitions to ensure such would not harm the interest of consumers.

To date, the PCC has received 166 merger transactions by local and international companies.

These transactions have a combined transaction value of P2.608 trillion.