PCC clears Kepco’s 38% eq­uity stake in So­lar Phl

The Philippine Star - - BUSINESS - By LOUELLA DESIDERIO

The Philip­pine Com­pe­ti­tion Com­mis­sion (PCC) has cleared the ac­qui­si­tion of Kepco Philip­pines Hold­ings Inc. of shares in So­lar Philip­pines Calata­gan Corp.

In a Dec. 4 de­ci­sion the Merg­ers and Ac­qui­si­tions Of­fice of the PCC said the trans­ac­tion would not lead to re­duced 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 or in the mar­ket for bi­lat­eral con­tracts, and thus do not com­pete in the same rel­e­vant mar­ket,” the PCC said.

The pro­posed trans­ac­tion in­volves Kepco’s ac­qui­si­tion of a 38 per­cent eq­uity in So­lar Philip­pines.

Kepco is a wholly-owned unit of Korea Elec­tric Power Corp. en­gaged in the busi­ness of power gen­er­a­tion in the Philip­pines.

So­lar Philip­pines, mean­while, is a lo­cal firm which owns and op­er­ates a 63.3-megawatt so­lar gen­er­at­ing unit in Calata­gan, Batan­gas.

Un­der the Philip­pine Com­pe­ti­tion Act, the PCC has the au­thor­ity to re­view merg­ers and ac­qui­si­tions to en­sure such would not harm the in­ter­est of con­sumers.

To date, the PCC has re­ceived 166 merger trans­ac­tions by lo­cal and in­ter­na­tional com­pa­nies.

These trans­ac­tions have a com­bined trans­ac­tion value of P2.608 tril­lion.

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