PCC hikes thresholds for M&A notifications

MANILA, Philippines — The Philippine Competition Commission (PCC) has raised the thresholds for mergers and acquisitions (M&As) that should be notified to the antitrust agency for review.

In a statement yesterday, the PCC said that it must be notified of M&A deals with a size of party (SoP) of P9.1 billion and size of transaction (SoT) of P3.8 billion.

Previously, the M&A notification thresholds were set at P8.5 billion for SoP and at P3.5 billion for SOT.

SOP refers to the total value of assets or revenues of the ultimate parent entity of any party to the deal.

Meanwhile, SOT is the total value of assets or revenues of the acquired entity.

The new thresholds took effect on March 1.

Under the Philippine Competition Act and its implementing rules and regulations, the PCC is authorized to adjust the thresholds for compulsory M&A notification to ensure these reflect inflation, economic growth performance and prevailing market conditions.

The thresholds were adjusted using the nominal gross domestic product growth of the previous calendar year.

Through the threshold adjustments, the PCC is able to focus its resources on M&A deals that are more likely to have a substantial impact on market competition.

The PCC conducts a review of M&As to ensure these transactions do not substantially reduce market competition.

Transactions that fall below the M&A notification thresholds may also be subject to PCC scrutiny through a motu proprio review.

The review may be initiated by the PCC if the transaction could significantly harm competition.

“By maintaining transparent and responsive notification thresholds, the Commission promotes regulatory certainty for businesses while safeguarding competitive market structures and protecting consumer welfare in the Philippines,” the PCC said.