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Watchdog reportedly says telcos’ merger documents were inadequate, deficient.
The Philippines’ competition watchdog on Friday announced it will investigate Globe Telecom and PLDT’s joint acquisition of San Miguel Corp’s (SMC’s) telco assets.
The news comes after disagreements over the adequacy or otherwise of transaction documents submitted by the operators to the Philippine Competition Commission (PCC).
"We have formally put the parties on notice that we will pursue a comprehensive review of their acquisition of SMC’s telco businesses, and we shall approve or disapprove the subject transaction after the conduct of such full review," the PCC said, in a statement.
Globe and incumbent PLDT agreed to acquire 50% each of SMC’s telecoms assets in late May for 52.85 billion pesos (€1.02 billion). The agreement includes spectrum held by SMC’s various subsidiaries, including valuable 700-MHz frequencies.
On Thursday, local news outlet Business World reported that Globe and PLDT had resubmitted their merger notification to the PCC along with additional information about the transaction after the regulator concluded that the original submission was inadequate and deficient.
"We assessed the new submissions of the parties, and based on the totality of information available to us, including public statements made by the parties, we believe there is a basis to conduct this review," said the PCC on Friday.
The investigation will look at whether the SMC deal will cause significant changes to the structure of the Philippines mobile market, and its effect on public welfare. The PCC did not say how long the investigation will take to complete.
"The review is intended to ensure that the transaction will, in the end, result in sustained gains for the public by not restricting competition," the PCC said.
