PCC OKs SM buyout of dormitory builder

The Philippine Competition Commission (PCC) has given its go-signal to SM Investments Corp. (SMIC)’s acquisition of a majority stake in a dormitory builder.

PCC said it approved SMIC’s acquisition of SMIC of 61.2 percent shareholding in Philippines Urban Living Solutions Inc. (PULS) after it found that “the transaction does not result in substantial lessening of competition in the relevant market.”

“After the acquisition, sufficient competitive constraints on the merged firm remains from other market participants,” PCC said.

SMIC is the holding company of the SM Group of Companies and has equity investments in property, retail, financial services and mining, among others.

PULS, meanwhile, is a Philippine registered property developer engaged in the business of leasing bed-spaces and units in purpose-built dormitories around the Bonifacio Global City area in Taguig City.

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 prejudice the interest of the consumers.

Mergers and acquisitions amounting to more than P1 billion need the approval of the PCC.

PCC said it has the power to require production and access to relevant business information among firms, but is also mindful of its duty to protect confidential business information obtained in the course of the proceedings.

PULS is behind the MyTown brand which at present has five projects with over 1,000 beds and is constructing an additional five projects that can house an additional 1,400 beds.