THE Philippine Competition Commission (PCC) has approved a joint venture between Lima Land Inc., a wholly owned subsidiary of Aboitiz InfraCapital Inc., and Yuchengco nonbank holding company House of Investments Inc.
In a statement on Friday, the antitrust watchdog said the deal, involving the purchase of shares in Tarlac Terra Ventures Inc., would not lead to a reduction of competition in the market.
Lima Land, which is engaged in developing and managing economic zones, will get a 49-percent stake in Tarlac Terra while House of Investments — a holding firm will retains a 51-percent interest.
Tarlac Terra, a real estate firm, is a subsidiary of House of Investments.
“The transaction is unlikely to substantially lessen competition in the relevant market,” the PCC said.
“The parties’ combined market share remains minimal, and the presence of established competitors with larger market positions collectively prevents the exercise of market power,” it added.
The PCC said that its Mergers and Acquisition and Economics offices assessed the market for the nationwide development, sale, and lease of industrial lots within investment promotion agency-registered ecozones.
It noted that ecozone locators were ensured uniform incentives under the Create More Act and that market entry and expansion conditions remained favorable.
