PCC clears DoubleDragon’s purchase of 35% of MerryMart shares

The Philippine Competition Commission (PCC) has approved DoubleDragon Corp.’s acquisition of a stake in MerryMart Consumer Corp., clearing the property developer’s entry into the grocery business.

In a statement on Thursday, the antitrust watchdog said it approved DoubleDragon’s plan to acquire a 35-percent stake in MerryMart. This is a deal valued at P1.28 billion, first announced in April last year.

The transaction effectively expands the portfolio of DoubleDragon, the property venture of tycoons Edgar “Injap” Sia II and Tony Tan Caktiong.

Even with this deal, the PCC said competition will remain strong in markets linked to the transaction.

These markets include the lease of commercial spaces and warehouse facilities used by grocery and convenience store operators, as well as the broader retail grocery market.

“DoubleDragon and MerryMart remain effectively constrained from engaging in input foreclosure (restricting rivals’ access to spaces or facilities) and customer foreclosure (limiting consumer choice in retail),” the PCC said.

The regulator said it reviewed potential competition effects in the leasing of commercial spaces and warehouse facilities to grocery and convenience store operators where CityMall and CentralHub—both DoubleDragon subsidiaries—operate.

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The PCC also consulted industry stakeholders, including competing retail chains, customers and relevant government agencies, before approving the transaction.

When the deal was announced last year, DoubleDragon said the investment was part of its strategy to expand its portfolio and strengthen its push toward P500 billion in revenues by 2035.

The company said the acquisition would be funded partly through cash and partly through the issuance of DoubleDragon shares.