SUMITOMO ACQUISITION GETS PCC NOD

The Philippine Competition Commission ( PCC) has given the green light to Sumitomo Heavy Industries, Ltd.’s acquisition of FW Energie B.V. on May 25.

Sumitomo Heavy Industries, Ltd. (SHI), a corporation registered in Japan, is the parent entity of several subsidiaries collectively known as the SHI Group.

The group proposed to purchase FW Energie B.V., a Dutch limited liability company with subsidiaries engaged in the circulating fluidized boiler business.

Fluidized bed boilers are part of a combustion technology that allows power plant op- erators to burn a wide range of fuels and are capable of generating electricity and steam.

The worldwide operations of SHI Group involve the manufacturing and sale of various products such as power transmission equipment, injection molding machines, environmental facilities and plants, including circulating fluidized bed boilers, industrial machinery and construction machinery.

In a decision, the antitrust body’s Mergers and Acquisitions Office (MAO) found that the transaction does not affect competition in the sector.

“The transaction does not result in substantial lessening in competition in the relevant market,” the PCC office said.

“No ability or incentives exist for the merged firm to raise prices or engage in foreclosure of its technology license,” it added.

The firm also found that sufficient post-acquisition competitive constraints were in place.

Firms entering merger and acquisition deals worth at least P1 billion are required by the Philippine Competition Act to notify the PCC.

The PCC is mandated under the law to review the deals to ensure that these will not prejudice the interest of consumers.