Ayala acquisition of iPeople shares gets PCC nod
The Philippine Competition Commission (PCC) has cleared the Ayala Group’s acquisition of additional shares in education firm iPeople Inc.. The antitrust body said that the deal would not substantially reduce competition in the respective focus markets.
In a statement over the weekend, the PCC said it approved the transaction since it won’t result in the substantial lessening of competition in the relevant markets, given the parties’ limited to negligible market shares.
The PCC also cited the presence of a sufficient number of competitors that can absorb switching customers. There are also remaining market players with larger market shares. These ensure robust competition in the industry.
To recall, conglomerate Ayala Corp. announced the completion of a P351-million deal to acquire the 2.8-percent stake in iPeople held by A. Soriano Corp. (Anscor) last week.
Following the acquisition, Ayala holds a 36.3-percent stake in iPeople, its partnership with the Yuchengco Group.
This involved acquiring 29.24 million shares in iPeople from Anscor via a special block sale, with each share valued at P12 a piece.
The PCC’s Mergers and Acquisitions Office found that parties involved have vertical relationships or connections between companies at different levels of the distribution or production chains in certain markets.
These include retail electricity supply and retail payment channel facilities on a nationwide basis. There is also commercial leasing in Davao del Sur, Camarines Sur, Laguna, Cavite and the National Capital Region (NCR).
It also covers fire and allied risks, motor car, casualty and suretyship nonlife insurance products as well as fixed broadband services on a nationwide basis.
The PCC also assessed possible vertical relationships post-transaction involving the provision of medical coverage products on a nationwide basis and the provision of commercial construction services in Davao del Sur, Camarines Sur, Laguna, Cavite and the NCR.
Ayala holds business interests in real estate, financial services, telecommunications, power, health care, logistics, industrial technologies and automotives and infrastructure, among others.
iPeople is a holding company under the Yuchengco group’s House of Investments Inc. that operates educational institutions like Mapua University through Malayan Education System Inc.
Meanwhile, Anscor is a holding company with investments in companies operating both locally and internationally.
The PCC is mandated by the Philippine Competition Act to review mergers and acquisitions to ensure such transactions do not substantially reduce competition in relevant markets or harm consumer welfare.
