The Philippine Competition Commission (PCC) has cleared the proposed joint venture between Singapore-based Verdant Philippines Alpha Pte. Ltd. and local solar power developer Raslag Corp., finding no competition concerns after a phase 1 review.
The transaction will allow Verdant to enter the Philippine renewable energy generation market and enable Raslag to expand into the off-grid wind power segment.
Under the deal, Verdant will acquire shares in Philippine Hybrid Energy Systems Inc. (Philippine Hybrid Energy) and PHESI Holdings Corp. (PHC). Raslag will also acquire shares in PHC.
Philippine Hybrid Energy holds wind energy service contracts for the 16-megawatt Puerto Galera wind project and its planned 10-MW second phase. It also operates a 7.306-MW battery energy storage system supporting off-grid facilities in Puerto Galera, Oriental Mindoro.
The PCC noted that there are no horizontal overlaps or vertical relationships between the parties. Raslag operates in the nationwide on-grid renewable energy market, while Philippine Hybrid Energy is active solely in the off-grid market on Mindoro Island.
The firms do not compete with each other because they serve different geographic markets.
The agency said the joint venture is unlikely to substantially lessen competition. It cited the presence of larger industry players and a fragmented supply landscape that will continue to exert competitive pressure.
