Philippine competition watchdog to probe SMC deal
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The Philippine Competition Commission (PCC) has announced it will conduct a “comprehensive review” of the 69 billion peso ($1.49 billion) acquisition of San Miguel Corporation’s telecoms assets by PLDT and Globe Telecom.
The regulator has sent letters to the operators informing them that a thorough review will be undertaken.
Such a review includes an investigation into whether there will be substantial changes to the market structure and the potential impact of the transaction on public welfare.
In a statement, the newly-formed PCC said it had decided to conduct the investigation “based on the totality of information available to us, including public statements made by the parties,” which led the authority to “believe there is a basis to conduct this review by virtue of the powers granted to the PCC by the Philippine Competition Act.”
The PCC recently decided not to accept PLDT and Globe’s initial application for the merger, claiming it was “deficient and defective in form and substance.”
The operators had recently resubmitted parts of their application to address the regulator’s concerns, while maintaining that their initial application was sufficient.
PLDT and Globe announced in late May that they have arranged to acquire SMC’s telecoms assets, including its coveted 700-MHz spectrum holdings, in a deal worth a combined 69.1 billion pesos.
Questions & Answers
Q.What is the purpose of the comprehensive review being conducted by the Philippine Competition Commission?
What is the purpose of the comprehensive review being conducted by the Philippine Competition Commission?
The review will investigate if the deal creates substantial changes to the market structure. It will also examine the potential impact of the transaction on public welfare in the telecommunications sector.
Q.Why did the PCC decide to conduct this investigation into the acquisition?
Why did the PCC decide to conduct this investigation into the acquisition?
The PCC's decision is based on all available information, including public statements from the parties involved. They believe there is sufficient basis to conduct a review under the Philippine Competition Act.
Q.Have PLDT and Globe Telecom's previous attempts to get the merger approved been successful?
Have PLDT and Globe Telecom's previous attempts to get the merger approved been successful?
No, the PCC previously rejected their initial application, deeming it 'deficient and defective'. The operators had resubmitted parts of their application, but maintained their original was sufficient.
Q.What assets are PLDT and Globe Telecom acquiring from San Miguel Corporation?
What assets are PLDT and Globe Telecom acquiring from San Miguel Corporation?
The companies are acquiring San Miguel Corporation's telecoms assets, which notably include its valuable 700-MHz spectrum holdings. The total deal is worth 69.1 billion pesos.
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