In its decision dated April 11, the PCC said the transaction between AC Energy and PHINMA Corp. will not likely result in substantial lessening of competition.
“PCC found no competition issues arising from the transaction since the competitive constraints remain from other players in the markets for power generation for bilateral contracts and the provision of retail electricity supply services in Luzon and Visayas,” stated the PCC decision, which was released to the media on Monday.
“The transaction does not significantly strengthen the ability or incentive of the merged firm to engage in customer or input foreclosure,” it added.
The competition watchdog further stated that the transaction will not increase substantially the likelihood of these power companies to engage in anti-competitive behavior with other power generators.
PHINMA has announced last January that it was selling PHP3.42 billion worth of its shares to AC Energy.
AC Energy also eyes to subscribe to approximately PHP2.63 billion worth of PHINMA Energy primary shares.
The transaction would result in AC Energy’s ownership of 68.45 percent of PHINMA’s outstanding capital stock.
AC Energy expects that the acquisition will enable it to achieve its goal of developing 5 gigawatt capacity of renewable energy by 2025.
PHINMA Energy has a total generation capacity of 472 megawatts. AC Energy, on the other hand, has generation capacity of 1.7 gigawatts, both in operation and under construction.