THE Philippine Competition Commission (PCC) said it approved Udenna Corp.’s acquisition of a Dutch firm that holds a stake in 2GO Group, Inc.’s parent company, Negros Navigation Co., Inc. (Nenaco).
In a statement Monday, the regulator said the acquisition by Udenna of KGL Investment Cooperatief U.A.’s (KGLI) shares in KGL Investment B.V. (KGLI-BV), was approved.
KGLI-BV holds a minority stake in Nenaco and, indirectly, 2GO.
The deal was approved after the companies paid on April 19 a P19.6-million fine “for consummating the deal without clearance from the antitrust commission.”
The penalty is equal to 1% of the value of the merger transaction.
In February, the PCC Mergers and Acquisitions Office found that Udenna bought 100% of KGLI-BV through a July 28, 2016-dated share purchase agreement.
The consummation of the deal was further reflected in a deed of transfer dated Aug. 19, 2016.
Under the Philippine Competition Act of 2015, parties to a merger and acquisition agreement valued above P1 billion are not allowed to complete their deal without notifying the commission.
The PCC launched a review of the transaction after Negros Holdings & Management Corp. (NHMC) filed a complaint in December 2016. NHMC is owned by the Tagud family which is disputing ownership of 2GO with Dennis A. Uy, whose holding firm is Udenna.
Udenna’s businesses include the distribution and retail of refined petroleum products and lubricants fronted by listed Phoenix Petroleum Philippines, Inc., as well as shipping operations related to the inter-island transport of petroleum products and other bulk products.
The Uy group is also involved in ship management, the operation of oil depots and storage facilities, industrial parks, real estate and property development, and waste management and environmental services. — Janina C. Lim
