By Bernie Cahiles-Magkilat
The Philippine Competition Commission (PCC) has approved the joint venture between Pasay Harbor City Corporation (Pasay Harbor City) and the City Government of Pasay for the rise of a 265-hectare land reclamation project in Pasay City.
The Pasay City local government unit alloted rights to reclaim its municipal waters, while Pasay Harbor City will fully finance all raw land reclamation works and expenses.
This transaction marks the first merger review by PCC involving an LGU as a party to the joint venture.
In a Commission Decision issued on September 26, PCC’s merger review found that the transaction is not likely to lead to substantial lessening of competition in the relevant market.
PCC noted that the reclaimed area will create a new market for commercial and residential real estate in Pasay City. Pasay Harbor City Corporation is a partnership composed of Udenna Development Corp. (UDEVCO), Ulticon Builders, Inc. and China Harbour Engineering Company.
It submitted its venture as an unsolicited proposal to develop a part of Manila Bay within Pasay City’s domain.
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 196 merger transactions by local and international companies, approved 184 of them and blocked 1 anti-competitive merger.
The transactions have reached a combined worth of P3.21 trillion in terms of transaction value.