MANILA -- The Philippine Competition Commission (PCC) approved the acquisition by East West Banking Corporation (East West) of the auto loan portfolio of Philippine Bank of Communications (PBCom).
The transaction involves the purchase by East West of a portion of PBCom’s loan receivables which were limited to dealership-generated accounts, subject to East West’s acceptance and review of related documentation.
In its decision dated June 18, the PCC found that the asset acquisition does not pose any substantial lessening of competition in the auto loan market.
“It was reviewed by the PCC and found to have no competition concern, thus it was approved on June 18. The parties were subject to merger review by PCC because they met the thresholds under the Philippine Competition Act,” Penelope Endozo, PCC Senior Media Relations Officer, told the Philippine News Agency (PNA) on Wednesday.
The PCC decision further stated that the transaction will not likely result in any significant change in market structure and that there are still sufficient competitive constraints from other banks offering the same loan types and leases. (PNA)
