The Philippine Competition Commission said Friday it raised the thresholds for compulsory notifications of mergers and acquisitions to reflect changes in the economy facing high inflation and reeling from the effects induced by the pandemic.
It said that beginning March 1, 2023, mergers and acquisitions that breach a size of party of P7 billion and a size of transaction of P2.9 billion should be notified to the PCC for mandatory merger review.
The commission’s merger review thresholds are adjusted to keep pace with the changes in the markets and reflect the businesses’ real value over time and relative to the size of the economy. It said the revised thresholds would not apply to mergers and acquisitions pending review, notifiable transactions consummated before March 1, and transactions already subject of a decision.
Both thresholds should be satisfied to trigger compulsory notification to PCC of a merger or acquisition. SoP refers to the value of assets or revenues of the ultimate parent entity of either transacting entity, while SoT refers to the value of assets or revenues of the acquired party and the entities it controls.