PCC reviews Udenna acquisition of Trans-Asia Shipping

The Philippine Competition Commission (PCC) is reviewing again the planned acquisition by Udenna Corporation of Trans-Asia Shipping Lines, Inc.

In a statement, the PCC said it has received the notification by Udenna and Trans-Asia on September 21, 2018 and started Phase 1 review yesterday.

The deal was nullified on June 28, 2018 after the Commission determined the parties’ failure to file a notification of the acquisition.

On the same date, in a related transaction, PCC conditionally cleared Chelsea Logistics Holding Corporation’s purchase of shares in KGLI-NM Holdings, Inc., which owns 2Go Group Inc.

The PCC noted that with the nullification of the Trans-Asia transaction, it eliminated the competition concerns brought about by the common ownership by Udenna of both 2Go and TransAsia.

The parties sought to have both decisions reconsidered by the PCC and to have the penalties reduced, leading to a hearing on September 17.

At the hearing, PCC said Udenna’s owner Dennis Uy and other representatives signified their intent to comply with the compulsory notification requirements of the Philippine Competition Act.

They further expressed their willingness to offer voluntary commitments to address the competition concerns arising from Udenna’s concurrent ownership of 2Go and TransAsia.

These include the commitment to be bound by a price monitoring scheme and provide necessary information to implement the same.