The Philippine Competition Commission (PCC) has approved the proposed joint ventures between Prime Infrastructure Capital Inc. and First Gen Corp. after concluding a Phase 1 review, finding no substantial competition concerns across interlinked energy markets.
The transaction involves Prime Infra, whose ultimate parent is Razon & Co. Inc., acquiring majority stakes in seven First Gen holding companies. These holding firms collectively possess indirect interests in the Santa Rita, San Lorenzo, San Gabriel, Avion and planned Santa Maria gas-fired power plants, along with an LNG terminal facility in Batangas.
The PCC’s Mergers and Acquisitions Office assessed six markets—two horizontal and four vertical—and determined the deal is unlikely to significantly reduce competition in any of them.
Prime Infra has interests in renewable energy, water and construction. Through subsidiaries Prime Energy Resources Development B.V. and Prime Oil and Gas Inc., Razon & Co. Inc. holds a combined 45-percent participating interest in the Service Contract 38 Consortium, which operates the Malampaya Gas Field.
First Gen, a company under Lopez Inc., operates a varied portfolio that includes geothermal, hydro, wind, solar, and natural gas power plants.
In the renewable energy generation market, the combined companies would become the largest player by a slight margin. However, the PCC noted the market remains unconcentrated, characterized by strong competition from both established players and new entrants.
For retail electricity supply, the merged entity’s combined share would remain substantially below that of major suppliers. The availability of multiple licensed retailers and customer switching are expected to maintain competitive pressure.
The commission found no ability or incentive for the parties to engage in foreclosure. It cited market fragmentation, active competition, regulatory safeguards and the lack of foreclosure incentives as reasons why the merger risks identified in a prior case were absent here.
The PCC’s findings reflect its case-by-case approach to merger assessment. In December 2024, the commission imposed behavioral conditions on a separate joint acquisition of LNG and power assets by Meralco PowerGen Corp., Therma NatGas Power Inc. and San Miguel Global Power Holdings Corp. due to identified risks of coordination and foreclosure.
 clears the joint venture between Prime Infrastructure Capital Inc. and First Gen Corporation, finding no competition concerns in energy markets including gas-fired power plants and an LNG facility.){kind=link}