PLDT, Globe complete SMC acquisition

PLDT and Globe have completed the final payment for their joint acquisition of conglomerate San Miguel Corporation’s telco assets, despite the ongoing court challenge from the Philippine Competition Commission (PCC).

The final 13 billion peso payment of the 69.1 billion ($1.39 billion) acquisition fulfills the operators’ payment obligations under the acquisition agreement for valuable spectrum assets reached in May last year.

But the agreement has been a contentious one for Filipino regulators, with the PCC currently petitioning the Supreme Court to lift an injunction blocking a planned review into the joint acquisition on competition grounds.

The regulator had sought to stop the operators from completing the payment or closing the acquisition while the case is ongoing.

PLDT and Globe officials both told that the payment is merely fulfilling the operators’ contractual obligations, with Globe asserting that the PCC’s call for the final payment to be postponed was a mere suggestion.

The operators also plan to continue implementing their newly-acquired spectrum into their operations while the case is ongoing.

In its petition to the court, the PCC had argued that allowing the operators to proceed with the acquisition will make it harder to unwind the acquisition if the court does find in its favor and the investigation proves that the merger violates competition law.