MANILA – The Philippine Competition Commission (PCC) has cleared the proposed acquisition by Century Properties Group Inc. (CPGI) of voting shares in Century City Development II Corporation (Century Development II).
The proposed transaction involves the acquisition of CPGI of common shares representing 40 percent of the total outstanding capital stock currently held by FMT Kalayaan Inc. in Century Development II.
According to the Mergers and Acquisitions Office (MAO), the proposed transaction is unlikely to give rise to competition concerns since it will not alter the current structure of the office leasing market, and there remain sufficient competitive constraints from other market participants in Makati and Bonifacio Global City post-transaction.
The acquired entity, Century Development II, is engaged in real estate development and is a joint venture between Century City Development Corporation (Century 1) and FMT Kalayaan Inc.
The acquiring entity, CPGI, is a publicly listed company engaged in the same sector, and whose ultimate parent entity, Century Properties Inc., is engaged in real estate development, selling and leasing, property management services, asset management services, marketing and promotion of service, and hospitality and leisure.
The transaction is an acquisition of sole control by Century Properties Inc. through CPGI, in Century Development II.
PCC, the country’s anti-trust body, officially resumed notification operations on May 18, to facilitate business activity and enable investments amid the pandemic as the government moves the economy to the recovery stage.
To date, PCC has received 215 notifications, prohibited one anticompetitive merger, and approved 198 mergers and acquisitions (M&As), with a combined worth of PHP3.85 trillion.
Real estate activities rank third in M&A transactions of the MAO in terms of transaction value, with the office logging 30 transactions in the sector thus far worth PHP494 billion.
Other sectors observed to have active M&A movement are in manufacturing, electricity and gas, water supply and waste management sectors. (PR)
