Competition commission approves Kepco-Solar Philippines deal

By Anna Leah E. Gonzales – December 07, 2018
from The Manila Times

The country’s antitrust watchdog has approved Kepco Philippines Holdings, Inc.’s acquisition of a 38-percent stake in Solar Philippines Calatagan Corp.

In a decision dated December 4, the Philippine Competition Commission (PCC) said its Mergers and Acquisitions Office had found that the transaction would “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 or in the market for bilateral contracts, and thus do not compete in the same relevant market,” it added.

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

Solar Philippines, meanwhile, is a domestic firm that owns and operates a 63.3 MW solar power generating unit in Calatagan, Batangas.

The 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 merger and acquisition deal approved by the PCC.