PCC approves Lotte Chilsung-Pepsi Philippines transaction

Korean beverage maker Lotte Chilsung Beverage Co. Ltd. has secured the go-ahead of the Philippine Competition Commission (PCC) to acquire a significant stake in local beverage and snack manufacturer Pepsi-Cola Products Philippines Inc.

In a decision dated last Thursday, March 26, 2020, the PCC said the transaction will not be detrimental to competition in the country moving forward.

"Upon review of the findings and recommendation of the Mergers and Acquisitions Office and the Parties' submissions, the Commission finds that the proposed acquisition by Lotte Chilsung of shares in Pepsi Philippines will not likely result in substantial lessening of competition," the decision read.

Under the Philippine Competition Act (PCA), the PCC is mandated to review mergers and acquisitions to ensure that such deals do not harm the interest of consumers.

The transaction involves Lotte Chilsung's acquisition of up to 2,134,381,838 common shares of Pepsi-Cola Products Philippines, representing 57.78% of Pepsi-Cola's total issued and outstanding capital stock.

To date, the PCC said it has received 211 mergers and acquisitions for review, of which 194 were approved with a combined worth of P3.81 trillion. —Jon Viktor Cabuenas/KG, GMA News