PROPERTY developer Ayala Land Inc. (ALI) on Thursday said it signed a deed of absolute sale with Central Azucarera de Tarlac Inc. (CAT) for the acquisition of several parcels of land.
“This transaction is part of ALI’s normal course of business and is not considered material,” the company said.
The acquisition involves 290 hectares of land located in Barangay Central in Tarlac province.
The Philippine Competition Commission (PCC) in early-March already approved the deal.
No amount was given on the said acquisition, but back then the PCC was reviewing deals that passed the P1-billion threshold amount.
The PCC said in its decision the Ayala Land-CAT deal “does not result in a substantial lessening of competition, considering that the parties are not operating in the same relevant geographic market.”
Ayala Land is the country’s second-largest property developer and has been aggressive in its efforts to develop more mixed-use properties across the country.
CAT, meanwhile, is primarily engaged in the manufacturing of sugar and all its by-products. Its facilities include the sugar mill and refinery, distillery and carbon-dioxide plants located in Tarlac.
The PCC, the country’s antitrust body, is mandated under the Philippine Competition Act to review mergers and acquisitions, including joint ventures, that meet its threshold amount of transaction.
It recently raised the new thresholds to P5 billion for the size of person and P2 billion for the size of transaction, or the value of the assets or revenues of the acquired entity.
The size of person refers to the value of assets or revenues of the ultimate parent entity of at least one of the parties.
1 comment
Mr. VG Cabuag, please be accurate with your report as we all know Ayala Land is the biggest developer in the Philippines in terms of revenue, assets, sales value, project value, capex and number of projects, though they are only second in market cap. International news agencies are also mentioning that Ayala Land is the biggest property developer in the Philippines as such they managed to mentioned “ IN TERMS” i.e assets, sales value etc, so please be clear with your reports. SM is far away second if you notice in terms of proj sales value, no of projects and revenue. Hope it helps.