The Philippine Competition Commission (PCC) said it has not yet received notifications of Unionbank-Citibank and Century Pacific Food-Ligo Sardines and Potato Corner, among the biggest mergers and acquisitions (M&As) deals in 2021.
In a statement, PCC said that given the P50-billion thresholds qualification, the parties are encouraged to conduct due diligence to check if they meet the thresholds for compulsory notification, or to steer clear of any competition issues by undergoing voluntary notification in case they do not meet the thresholds.
PCC has allowed parties to file their notifications before consummation. PCC has waived the usual notification period of 30 days upon signing of definitive agreement due to the pandemic.
Transactions of this nature may very well indicate the outset for economic recovery or post-pandemic restructuring, PCC noted.
While change of ownership of well-known brands means efficiency or expansion for former competitors into partners, PCC said this also means consumers may be faced with fewer choices and possible changes of price points.
As the antitrust authority, PCC's merger reviews will ensure that the transactions do not lead to substantial lessening of competition in the relevant markets.
The Aboitiz-owned Union Bank of the Philippines (UnionBank) expects to be the country’s third largest credit card issuer after acquiring Citi Philippines’ P55-billion credit card portfolio.
US-based Citi, also known as Citibank, has one million credit card holders in the Philippines worth P55 billion versus UnionBank’s over 200,000 with a transaction value of P8 billion.
From its current 8th place in the country’s credit card business, Citi’s portfolio will catapult UnionBank to one of the three major players in the credit card sector.
UnionBank competed to purchase Citi’s consumer banking business – edging out bigger banks -- to gain profitability and expand its portfolio.
Meantime, Century Pacific Food, Inc., one of the leading branded food and beverage companies in the Philippines owned by the Po family, is acquiring the iconic and market leading Ligo, a legacy brand known for its range of high quality sardines and other marine products, from the Tung family.
In a disclosure to the Philippine Stock Exchange, CNPF said it will purchase for an undisclosed sum the assets and intellectual property related to the manufacturing of Ligo’s product lineup, which is composed of shelf-stable marine products.
Ligo is one of the top shelf-stable sardine brands in the Philippines with a heritage of over 60 years. It is a market leader in key regions in the Philippines.
CNPF, on the other hand, is one of the largest manufacturers and exporters of marine products. It is home to household brands such as Century Tuna, 555, Blue Bay, and Fresca. The company is also a market leader in meat and has a strong emerging business in dairy and coconuts.
In addition, another Po family-owned firm Shakey’s Pizza Asia Ventures, Inc. (PIZZA), the leading full-service restaurant chain group in the Philippines, is buying the popular Potato Corner, one of the leading food kiosk brands in the country.
In a disclosure to the Philippine Stock Exchange, Shakey’s said it has signed an Asset Purchase Agreement under which it will purchase assets and intellectual property relating to the Potato Corner business.
The acquisition will also involve owning and operating all company-owned stores, as well as serving as brand-owner and franchisor of stores being operated by franchisees both domestically and internationally.
Potato Corner is widely-known as one of the leading and most established food kiosk chains in the Philippines. It is a heritage brand made famous by its freshly cooked flavored fries, a well-loved indulgent snack by kids and adults alike.
Since its inception in 1992, the brand has built a vast network of over 1,000 outlets domestically and has a growing international footprint in Asia and beyond.
Over the years, the business has built a strong brand equity and demonstrated robust performance, attractive margins, and the capability to scale – all aligned with PIZZA’s criteria for acquisitions.