PCC OKs Aramco investment in Unioil

MANILA, Philippines — The Philippine Competition Commission (PCC) has approved the proposed acquisition by Aramco Asia Singapore Pte. Ltd. of a 25-percent interest each in Unioil Petroleum Philippines Inc. and Unioil Energy Pte. Ltd.

“After reviewing submissions from the parties and third-party feedback, the Commission determined that the transaction would not likely result in a substantial lessening of competition in the relevant markets,” the PCC said in a statement.

The PCC said the parties have limited market shares and face substantial competition from other established players.

In addition, it said there is a high probability that new players will enter the market.

Aramco is a wholly owned affiliate of Saudi Arabian Oil Co. It serves as the Asia hub for sales, marketing, procurement, logistics and other support services.

Meanwhile, Unioil Petroleum is a domestic company engaged in the sale of various petroleum products such as diesel, gasoline, asphalt, coolants and lubricants.

Unioil Energy is a foreign trading company engaged in the supply of gasoline and diesel to the Philippine market.

The PCC Mergers and Acquisitions Office started its Phase 1 review of the transaction on June 13.

In its review, the PCC looked at the relevant markets for the nationwide non-retail supply of automotive and industrial lubricants and coolants, the global ex-refinery and non-retail supply of diesel and gasoline, as well as the supply of ethanol as an input for gasoline in the nationwide non-retail market.

The PCC is mandated under the Philippine Competition Act to review mergers and acquisitions, including foreign transactions that meet notification thresholds to make sure such deals do not harm competition or consumers.

At present, mergers and acquisitions with size of party of at least P8.5 billion and size of transaction worth at least P3.5 billion have to be notified and approved by the PCC.

In 2024, the PCC reviewed 17 transactions worth P784 billion.