The Philippine Competition Commission (PCC) said on Tuesday that the Gokongwei Group’s full takeover of convenience store chain Ministop Philippines no longer needs to undergo competition review.
PCC Chairman Arsenio M. Balisacan said in a statement that the transaction is not expected to change the “economic behavior” of the firm despite the share sale.
Gokongwei-led Robinsons Retail Holdings Inc. (RRHI), through its subsidiary Robinsons Supermarket Corp., currently already owns the 60 percent of Robinsons Convenience Stores Inc. (RCSI), which is the exclusive local franchisee of Ministop.
The deal involves Robinsons buying out Ministop Japan’s 40 percent stake in RCSI next month, providing the former full ownership.
Prior to the transaction, PCC said Robinsons already has a majority stake in Ministop, giving the company “control.”
As such, the competition watchdog said the parties do not need to notify the proposed acquisition to them anymore.
“Merger reviews are focused on the effects and changes of market behavior in the hands of new owners or stakeholders. This transaction may result in a change in ownership of a significant portion of equity but it is not likely to have an effect on the economic behavior of the target firm,” Balisacan said.
The antitrust commission said it will continue monitoring mergers moving forward in a bid to keep a healthy level of competition in the market.
Last year, PCC assessed four merger and acquisition (M&A) transactions amounting to P470 billion. Two of these transactions were approved while the other were withdrawn as they were exempted from compulsory notification.
The 2021 figure is much lower compared to the 26 M&A notifications amounting to P909 billion recorded in 2020. The competition watchdog attributed the fewer M&A reviews last year to a higher threshold for compulsory merger notification.
Meanwhile, PCC’s Competition Enforcement Office (CEO) is currently undertaking one preliminary inquiry and 18 full administrative investigations (FAI).
The PCC unit opened 10 FAIs last year to look into complaints involving firms in the telecommunications, water, energy and health industries.
As of December 26, 2021, CEO has looked into 869 enforcement inquiries and complaints, including those of possible cartels and abuses of dominance.