The country’s antitrust agency, the Philippine Competition Commission (PCC), approved the joint venture between Robinsons Land Corp. (RLC) and Shang Properties Inc. (SPI) to develop a property in Bonifacio Global City, in Taguig, citing that the transaction does not result in substantial lessening in competition.
A 9,118-square meter property at McKinley Parkway corner 5th Avenue is set to be developed by RLC and SPI.
The property will feature two luxury residential condominiums, with a potential conversion of a portion into serviced apartments and commercial spaces.
“There exists sufficient post-acquisition competitive constraints on the parties from other market participants,” the PCC decision signed March 20 read.
It was also noted there is “neither increased ability nor incentive to engage in input foreclosure or customer foreclosure, post-acquisition.”
Both RLC and SPI agreed to subscribe to shares of stock of the joint venture (JV) company, resulting in each party owning 50 percent of the outstanding stock of the JV firm, which has yet to be named. Also, both parties shall extend Shareholder Advances at fair and commercial rates comparable to loans extended by third party banks and financial institutions to the JV firm in equal amounts.
RLC is a publicly listed company that operates as the real-estate investment arm of JG Summit Holdings Inc. while SPI is a publicly listed real-estate property development company. Through its subsidiaries, SPI is engaged in hotels, lease of commercial and office spaces, development and sale of luxury residential condominiums, and property management.
PCC is mandated under the Philippine Competition Act to review mergers, acquisitions and joint ventures of firms across all sectors that meet the threshold to ensure that these deals will not harm the interest of consumers.