PCC okays Kepco PH’ ac­qui­si­tion of 38% eq­uity in So­lar Philip­pines

Manila Bulletin - - Front Page - By BERNIE CAHILES-MAGKILAT

The Philip­pine Com­pe­ti­tion Com­mis­sion (PCC) has ap­proved the ac­qui­si­tion by Kepco Philip­pines Hold­ings, Inc.’s of shares in So­lar Philip­pines Calata­gan Cor­po­ra­tion.

The pro­posed trans­ac­tion in­volves the ac­qui­si­tion by Kepco Philip­pines Hold­ings, Inc. (Kepco PH) of a 38 per­cent eq­uity in­ter­est in So­lar Philip­pines Calata­gan Cor­po­ra­tion (So­lar Philip­pines).

Kepco PH, the ac­quir­ing en­tity, is a wholly-owned cor­po­ra­tion of Korea Elec­tric Power Cor­po­ra­tion that is en­gaged in the busi­ness of power gen­er­a­tion in the Philip­pines. So­lar Philip­pines, the ac­quired en­tity, is a do­mes­tic cor­po­ra­tion that owns and op­er­ates a 63.3 MW so­lar gen­er­at­ing unit in Calata­gan, Batan­gas.

In the Com­mis­sion de­ci­sion made on De­cem­ber 4, 2018, the Merg­ers and Ac­qui­si­tions Of­fice (MAO) of the PCC found that the trans­ac­tion does not re­sult in sub­stan­tial less­en­ing of 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 (WESM) or in the mar­ket for bi­lat­eral con­tracts, and thus do not com­pete in the same rel­e­vant mar­ket,” the PCC de­ci­sion read.

PCC, the coun­try’s anti-trust body, is man­dated un­der the Philip­pine Com­pe­ti­tion Act to re­view merg­ers and ac­qui­si­tions to en­sure that these deals will not harm the in­ter­est of con­sumers.

To date, PCC has re­ceived 166 merger trans­ac­tions by lo­cal and in­ter­na­tional com­pa­nies, worth a com­bined P2.608 tril­lion in terms of trans­ac­tion value. The Kepco PH-So­lar Philip­pine Calata­gan Cor­po­ra­tion trans­ac­tion is the 154th ap­proved M&A deal by the PCC.

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