The Philippine Competition Commission approved the P18-billion acquisition of shares in Rustan Supercenters Inc. by Robinsons Retail Holdings Inc. of the Gokongwei Group.
The PCC’s Mergers and Acquisitions Office said in a decision signed August 16, 2018 the transaction “does not result in substantial lessening of competition in the relevant market.”
Robinsons Retail will have full control and ownership of the issued and outstanding capital shares in Rustan Supercenters.
It will acquire all the issued and outstanding capital shares of Rustan’s Supercenters in exchange for 191,489,360 primary common shares of Robinsons Retail.
Robinsons Retail is a multi-format retailer in the Philippines engaged in the business of trading goods, commodities and merchandise, with core retail operations in six business segments—supermarkets, department stores, DIY stores, convenience stores, drug stores and specialty stores.
Robinsons Retail operates 154 branches of Robinsons Supermarket, Robinsons Selections, Robinsons Easymart and Jaynith Supermarkets across the country.
Rustan Supercenter, meanwhile, is engaged in grocery retailing with 75 branches composed of the Marketplace by Rustan’s, Rustan’s Supermarkets, Shopwise, Shopwise Express and Wellcome in the Philippines.
Both Robinsons Retail and Rustan Supercenters operate under the one-stop shop grocery retail market.
With 46 branches from both companies operating in same area to date, the PCC noted no ability and incentive for the parties to foreclose the branches.
The PCC is the the country’s anti-trust body. It is mandated by the Philippine Competition Act to review mergers and acquisitions that meet the thresholds to ensure these deals will not harm the interest of consumers.
It has received 153 notifications with a combined value of P2.41 trillion. The Robinsons-Rustan’s acquisition is the 144th transaction approved by the commission.
