The Philippine Competition Commission (PCC) has approved the acquisition by Scatec Solar ASA (Scatec Solar) of 100 percent of SN Power AS (SN Power) from the Norwegian Investment Fund for Developing Countries (Norfund).
SN Power has investments in hydro-power businesses in the Philippines through a joint venture with Aboitiz Renewables Inc.
The PCC said its Mergers and Acquisitions Office (MAO) found that the transaction does not result in substantial lessening of competition in the nationwide markets of renewable power generation and electricity supply.
This is because there is no horizontal or vertical relationship between the acquiring entity, including its notifying group, and the acquired entity and the entities it controls.
With the transaction’s overall equity value set at US$1.17 billion, the Scatec Solar-SN Power transaction is the first approved transaction for 2021 following the new thresholds of P50 billion (US$1 billion) under the Bayanihan II Act, and the 208th overall transaction cleared by the PCC.
Until this transaction, Scatec Solar had no operations in the Philippines, but is engaged in developing, building, and operating renewable energy power plants globally. Scatec is based in Norway and is known to invest in green energy companies in emerging markets.
On the other hand, SN Power develops, builds, owns, and operates renewable energy power plants in Asia, Africa, and Latin America concentrating on hydropower assets.
SN Power is wholly-owned subsidiary of the Norfund, which in Norway government’s turn assists in developing sustainable businesses in developing countries by providing equity capital or by furnishing loans or guarantees.
In the Philippines, SN Power Philippines are present in the Manila-Oslo Renewable Enterprise, Inc. and various SNAP entities (SN Aboitiz Power–Magat Inc.; SNAP–Projects Inc.; SNAP–Benguet Inc.; SNAP–Hydro Inc.; SNAP– Renewables Inc.; SNAP–RES Inc.; SNAP–Ifugao Inc.; SNAP–Greenfield Inc.; SNAP–Generation Inc.; SNAP–Cordillera Inc.; SNAP–Energy Inc.; and Neptune Hydro Inc.).
Although SNAP Entities are joint venture entities between SN Power and Aboitiz Renewables, Inc., the shares subject of the transaction only cover SN Power's interests.
In effect, SN Power’s interests in Norfund will be replaced by Scatec. After the transaction, Scatec will acquire 100 percentof shares of SN Power from Norfund, rendering the latter to no longer have any business in the Philippines.