PCC OKs EastWest acquisition of PBCom auto loan portfolio

MANILA, Philippines — The Philippine Competition Commission (PCC) has cleared East West Banking Corp.’s acquisition of the auto loan portfolio of Philippine Bank of Communications (PBCom).

The antitrust body, in its decision issued on June 18, found the transaction unlikely to lead to reduced competition in the auto loan market.

“This is premised on the finding that the transaction will not likely result in any significant change in market structure, and after the transaction, there is sufficient competitive constraints from other banks offering the same loan types and leases,” PCC said.

Under the transaction, EastWest will purchase a portion of PBCom’s auto loan receivables which is limited to dealership-generated accounts.

The purchase is subject to EastWest’s acceptance, and would proceed after due diligence and review of relevant documentation. 

EastWest Bank is a subsidiary of the Gotianun family’s Filinvest Development Corp.

The bank is engaged in retail banking, consumer lending, corporate banking, rural banking, as well as treasury and trust products.

PBCom, meanwhile, offers basic commercial banking services through deposit products, treasury and foreign exchange trading, trade-related services, cash management services, credit and loan facilities, trust and investment management services, and ancillary services.

Merger and acquisition deals are reviewed by the PCC to make sure such would not reduce competition in the market and to protect consumer interest.

So far, the body has received 184 notifications for mergers and acquisitions with a total transaction value of P2.87 trillion.