PCC raises M&A notification thresholds

THE Philippine Competition Commission (PCC) has said it raised the thresholds for notifying the regulator about mergers, acquisitions, and joint venture transactions, with the new thresholds in effect starting March 1.

In a statement, the PCC said it increased the Size of Party  threshold for mergers and acquisitions (M&A) to P9.1 billion from P8.5 billion previously.

It also raised the Size of Transaction threshold for mergers and acquisitions to P3.8 billion from the previous P3.5 billion.

Both thresholds must be met for a transaction to be considered notifiable under Section 17 of Republic Act No. 10667, or the Philippine Competition Act (PCA), and Rule 4, Section 3 of its Implementing Rules and Regulations (IRR).

The revised thresholds also apply to joint venture transactions under Rule 4, Section 3(d) of the law’s IRR.

The PCC reviews the notification thresholds for mergers, acquisitions, and joint ventures to ensure they are up to date, ensuring that businesses are afforded regulatory certainty and protecting the welfare of consumers.

The PCC is also authorized to review transactions that fall below the notification thresholds. It may initiate a motu proprio (on its own initiative) review if it suspects a deal could significantly harm competition.

The commission is authorized to determine and adjust the thresholds for compulsory merger notification, following Sections 12(b) and 19 of the PCA, in relation to Rule 4, Section 8 of the IRR.

“The adjustment ensures that the notification thresholds reflect inflation, economic growth, and prevailing market conditions, while enabling the commission to effectively allocate its resources toward transactions that are more likely to have a substantial impact on competition in Philippine markets,” PCC said.

The thresholds were indexed against nominal gross domestic product growth of the previous calendar year. — Beatriz Marie D. Cruz