By Bernie Cahiles-Magkilat
The Philippine Competition Commission (PCC) has approved Kepco Philippines Holdings, Inc.’s acquisition of shares in Solar Philippines Calatagan Corporation.
In a statement, the competition authority said it gave the go signal to Kepco’s plan to acquire a 38-percent interest in Solar Philippines Calatagan Corporation, a subsidiary of Solar Philippines.
Kepco PH 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 country’s largest solar energy provider, 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.