PCC clears Phoenix acquisition of local FamilyMart store chain

The Philippine Competition Commission (PCC) has cleared the acquisition of Phoenix Petroleum Philippines Inc. of the local operations of Japanese convenience store chain FamilyMart.

The PCC said yesterday its Mergers and Acquisitions Office found that the transaction does not result in substantial lessening of competition in the relevant market.

It said there is no ability or incentive for the firms to engage in foreclosure after the acquisition.

Likewise, the antitrust commission noted there are sufficient competitive constraints from other players in the same market after the transaction.

Phoenix Petroleum, controlled by Davao-based businessman Dennis Uy, is a publicly-listed corporation that trades petroleum products and operates of gas stations, oil depots, storage facilities, and allied services. Its parent firm is Udenna Corp.

Last October, Ayala Land Inc. and SSI Group Inc. said SIAL CVS Retailers Inc., FamilyMart Co. Ltd. and Itochu Corp. have entered into a memorandum of agreement to sell their entire stake in Philippine FamilyMart CVS Inc.(PFM) to Phoenix Petroleum.

PFM is the official area franchisee of the FamilyMart brand of convenience stores in the Philippines. It has a current network of 67 company-owned and franchised stores all over the country.

PCC is mandated under the Philippine Competition Act to review mergers and acquisitions to ensure that such deals will not harm the interest of consumers.

To date, PCC has received 142 merger filings by local and international companies, worth a combined P2.171 trillion.

Of the total number of filings, 38 involve global deals.