THE Philippine Competition Commission (PCC) approved Macsteel Global SARL B.V.’s (MacGlobal) acquisition of MSSA Investments’s stake in Macsteel International Holdings B.V., but slapped the companies with a more than P500,000 fine for its failure to notify the competition watchdog within the required period.
In a statement on Tuesday, the antitrust body said the merger of the steel firms was cleared because it was not seen as substantially lessening competition in the market.
In July, MacGlobal bought 50% of MSSA Investments B.V.’s shares in Macsteel International. MacGlobal is a subsidiary of Macsteel Holdings Luxembourg, while MSSA is an indirect subsidiary of Dutch steel and mining company ArcelorMittal S.A.
The PCC found in its review in October that “there are no substantial changes to the management and operations of Macsteel International and its subsidiaries after the buyout. Enough competitors were also present post-transaction.”
However, MacGlobal and MSSA could not escape the fine for violating the notification requirement.
“Under the PCC Rules of Merger Procedure, firms that notify beyond the 30-day period but before consummating the transaction are subjected to a fine of 1/2 of 1% of 1% of the value of transaction… [T]he fine imposed on MacGlobal-ArcelorMittal transaction amounted to P526,219.50,” the PCC said, without disclosing the transaction value.
MacGlobal and MSSA, the two companies behind the Macsteel International joint venture, have 45 days from Nov. 14 to settle its fine with the PCC. — Denise A. Valdez
