THE Philippine Competition Commission (PCC) green-lit a joint venture (JV) between Mitsubishi Corporation and Filinvest Alabang, Inc. (FAI) to develop upscale mixed-used projects in Alabang, Muntinlupa City.
The competition watchdog in a decision issued on Dec. 10 said that the joint venture, which will be incorporated under the name Spectrum Alabang Properties, Inc., is not likely to result in substantial lessening of competition in the Grade-A office space and retail markets in the area.
The PCC determined that there is a sufficient number of market players in and outside the Alabang area to compete with Spectrum. It noted that the joint venture will not decrease market competition for the creation and development, as well as the management of commercial real estate development projects.
Mitsubishi will be acquiring 40% of the issued and outstanding shares of stock in Filinvest Alabang to develop and manage 16,928 square meters of land in the 244-hectare mixed-use estate Filinvest City.
A subsidiary of conglomerate Filinvest Development Corporation (FDC), FAI was incorporated to develop Filinvest City, a joint venture project with the Philippine government. FDC owns 80% of the Alabang-based subsidiary, with 20% ownership going to Filinvest Land, Inc.
The Mitsubishi Corporation Group has interests in automotive and mobility, natural gas, industrial materials, petroleum and chemicals, mineral resources, industrial infrastructure, food industry, consumer industry, power solution, manufacturing, and urban development.
PCC, the country’s anti-trust body, reviews mergers and acquisitions under the Philippine Competition Act of 2015.
The commission has approved 188 of 201 transactions for review, and blocked one merger. — Jenina P. Ibañez