MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared the acquisition of the Masinloc power projects in Zambales by San Miguel Corp.’s power unit.
In its approval, PCC cleared SMC Global Power Holdings Corp.’s acquisition of shares in Masin-AES Pte. Ltd., AES Transpower Pte. Ltd. and AES Philippines Inc. to add in its power generation and retail electricity portfolio.
SMC Global acquired 51 percent and 49 percent equity interests of AES Phil Investment Pte. Ltd. and Gen Plus B.V., respectively, in Masin-AES; 100 percent equity interest of AES Corp. in AES Transpower; and 100 percent stake of AES Phil in AES Philippines.
PCC said the acquisition “does not result in a substantial lessening of competition in the relevant markets.”
It noted that “there remains sufficient post-acquisition competitive constraints from competitors in the power generation and retail electricity market.”
The agency also said “there appears neither increased ability, nor incentive to engage in anti-competitive foreclosure post-acquisition” and “it is not likely to substantially increase the likelihood that the parties will engage in anti-competitive coordinated behavior.”
AES owns Masinloc coal-fired thermal plant and Masinloc Battery in Zambales and Kabankalan Battery Storage System in Kabankalan, Negros Occidental.
The oldest facility, the Masinloc coal-fired power plant, was privatized by the government in 2008, where AES won the auction for the Zambales-based coal-fired facility with its bid of $930 million.
In December 2017, SMC Global signed a deal with the AES owners and took over the Masinloc power projects for roughly $1.9 billion.
These power facilities will add to SMC Global’s portfolio in the power generation market which currently includes Sual Power Plant in Sual, Pangasinan; San Roque Hydroelectric Multipurpose Power Project in San Manuel, Pangasinan; Ilijan Power Plant in Ilijan, Batangas; Limay Greenfield Clean Coal Plant in Limay, Bataan; Angat Hydroelectric Power Plant in Angat, Bulacan; and Greenfield Powerplants in Malita, Davao del Sur and Limay, Bataan.