PCC clears Ayala Land’s acquisition of CAT property

THE Philippine Competition Commission ( PCC) cleared Ayala Land, Inc.’s ( ALI) acquisition of a Tarlac City property owned by Central Azucarera de Tarlac ( CAT).

In a decision dated March 6, the antitrust body’s Mergers and Acquisitions Office said the transaction “does not result in substantial lessening of competition, considering that the parties are not operating in the same relevant geographic market.”

Ayala Land is buying around 290 hectares of CAT’s land in Barangay Central, San Miguel in Tarlac City. CAT’s sugar mill, refinery, distillery and carbon dioxide plants are located in Tarlac

Financial details of the acquisition were not disclosed. Ayala Land is ramping up spending this year, setting aside P110.8 billion in capital expenditures. The company expects strong demand for residential properties to continue. Around 43% of the capex or P47.4 billion will be allotted for residential projects, 17% or P18.7 billion for mall projects, 12% or P14 billion for land acquisitions.

ALI’s attributable profit grew 21% to P25.3 billion in 2017, driven by the 14% increase in revenues to P122 billion amid strong demand for residential projects in the country.

The PCC earlier this week released the revised guidelines for the mandatory notification of mergers and acquisitions, raising the threshold for the size of person to P5 billion and the size of transaction to P2 billion. The new guidelines will be implemented on March 20.