PCC reviews Ayala unit’s acquisition of North Luzon drugstore chain

MANILA, Philippines — PCC reviews Ayala unit’s acquisition of North Luzon drugstore chain The Philippine Competition Commission (PCC) is conducting a deeper review of the proposed acquisition by Ayala Corp.’s unit of a substantial stake in North Luzon drugstore chain St. Joseph Drugstore.

The PCC said in a statement that it started the in-depth review of the proposed acquisition by AHCHI Pharma Ventures Inc. of a substantial stake in St. Joseph Drugstore, which is operated by Joleco Resources Inc.

The PCC said it was notified of the proposed transaction, which involves AHCHI Pharma Ventures’ acquisition of a 49 percent stake in Joleco Resources  last Jan. 13.

AHCHI Pharma Ventures serves as the holding company for AC Health’s pharmaceutical businesses including Generika Drugstore.

Based on initial data gathered by the PCC Mergers and Acquisitions Office (MAO) under its Phase 1 review, the PCC said there were potential competition concerns in the retail sale of pharmaceutical and non-pharmaceutical products across 28 localities in Northern Luzon, spanning the Ilocos Region and the Cordillera Administrative Region.

“Given the above, the MAO recommended opening a Phase 2 review, which entails conducting a more detailed and extensive assessment on whether the transaction may lead to a substantial lessening of competition in the relevant markets,” the PCC said.

A Phase 2 review lasts for a maximum of 60 days.

Under the Philippine Competition Act, the PCC is mandated to evaluate mergers or acquisitions.

The PCC review aims to ensure deals will not lead to substantial reduction of competition in the relevant markets and will not harm consumer welfare.