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