PCC clears Robinsons, Shang Properties tieup

The Philippine Competition Commission (PCC) has approved the joint venture between Robinsons Land Corp. (RLC) and Shang Properties Inc. (SPI) for a real estate development in Bonifacio Global City (BGC) in Taguig City.

In a decision signed on March 20, the PCC said its mergers and acquisitions office found the transaction would not result in reducing competition.

“There are enough existing competitive constraints on the parties after the transaction,” the PCC said.

It also said there is no increased ability nor incentive to engage in input foreclosure or customer foreclosure.

RLC and SPI plan to develop a 9,118-square meter property located at McKinley Parkway corner 5th Avenue in BGC.

The development will involve two luxury residential condominiums.

It will also involve converting a portion of the development into serviced apartments and commercial spaces.

RLC is the real estate investment arm of JG Summit Holdings Inc.

Meanwhile, SPI, a listed real estate property development company, is engaged in hotels, lease of commercial and office spaces, development and sale of luxury residential condominiums, and property management.

RLC and SPI will each own 50 percent of the outstanding stock of the joint venture company.

Both firms will also extend shareholder advances at fair and commercial rates comparable to loans extended by third party banks and financial institutions to the joint venture company in equal amounts.

Under the Philippine Competition Act, the PCC is mandated to review mergers, acquisitions and joint ventures of firms across all sectors that meet the threshold to ensure such deals would not harm consumer interest.