The Philippine Competition Commission (PCC) has approved the acquisition deal of tycoons Manuel V. Pangilinan, Sabin Aboitiz, and Ramon S. Ang to boost the country’s power sector.
The PCC said that it approved the acquisition deal on Dec. 20 subject to competition safeguards.
The deal involves the acquisition of a 67-percent stake by Chromite Gas Holdings, Inc. from San Miguel Global Power Holdings Corp. (SMGP) in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp.
Chromite is a 60-40 percent joint venture between Manila Electric Company’s Meralco PowerGen (MGen) and Aboitiz Power Corp.’s Therma Natgas Power Inc.
Chromite and SMGP are also acquiring 100 percent of Linseed Field Corp. (LFC) to operate an LNG terminal in Batangas City.
“The deal, which is considered critical for strengthening the country’s energy supply, is subject to conditions aimed at ensuring fair competition and promoting transparency,” the PCC said.
The anti-trust body said that during the review, it identified competition concerns such as risks of coordination in the national power generation market and foreclosure in power supply deals with distribution utility (DU) companies.
PCC said the involved firms submitted voluntary commitments on Oct. 18, 2024 to address the competition issues identified by the agency.
“These commitments were reviewed and validated by the PCC, with input from industry players, stakeholders, the Department of Energy (DOE), and the Energy Regulatory Commission (ERC),” it added.
Among the safeguard measure include the PCC’s oversight of the competitive selection process (CSP) to prevent collusion, submission of power plants’ unplanned outages reports to the PCC within seven days after reporting to the DOE, and appointing a competition compliance officer to ensure that these commitments are being fulfilled.
“The acquired companies must also operate independently of their parent companies, with strict measures to separate IT (information technology) systems, offices, and management to prevent coordination or undue influence. Boards of directors will include independent members, and internal trading units will operate independently of affiliates,” it added.
Meanwhile, MGen, AboitizPower, and SMGP have welcomed the PCC decision.
“The companies expressed their appreciation for the PCC’s thorough review process and affirmed their shared commitment to advancing a competitive energy market that delivers real benefits to Filipino consumers,” the power companies said.
“This partnership highlights the shared vision of MGEN, AboitizPower, and SMGP to address the growing energy needs of the Philippines while promoting transparency, fairness, and long-term sustainability in the energy sector,” they added.
PHOTO FROM SAN MIGUEL POWER
