Grab’s acquisition of Move It needs no PCC thumbs up

Grab Philippines can proceed with its acquisition of motorcycle taxi firm Move It without securing the approval of the Philippine Competition Commission (PCC).

The initial assessment made by the PCC found that the transaction “likely did not breach the thresholds for compulsory notification.”

“Hence, the parties need not wait for approval from the PCC to consummate the transaction,” PCC officer-in-charge chairperson Johannes Bernabe said in a statement on Tuesday.

In August, Grab Philippine announced its acquisition of Move It for an undisclosed amount, but said the value of the transaction is below the PCC’s P1-billion threshold for compulsory notification of mergers and acquisitions. 

“Publicly available information suggests that the transaction was entered into by the parties when the P50-billion notification thresholds under Republic Act No. 11494 or the Bayanihan to Heal as One Act was in effect,” Bernabe said.

“Likewise, the publicly announced size of transaction seems to not have breached the thresholds under the Bayanihan Law,” he said.

Grab said that despite the acquisition, Move It will continue to operate as a separate entity and use its own platform.

Move It also said that while it was acquired by Grab, it remains as the third motorcycle taxi player in the government-backed pilot study for the viability of motorcycle taxis as a mode of public transport.

Despite not breaching the compulsory threshold for notification, Bernabe said the antitrust body may still launch a motu proprio review of the transaction if it finds reasonable grounds to believe that the deal will result in substantial lessening of competition in the relevant markets.

“Transactions in digital markets are often characterized by small tangible assets that fail to meet the triggers for mandatory review. Their importance and utility to consumers, however, rank high in the priorities of the Commission to merit steadfast monitoring,” he said.

The PCC chief noted that the acquisition by Grab Philippines of Move It will not affect the company’s existing legal commitments to the PCC relating to its takeover of Uber.

“The PCC earlier expressed its support in amending the Land Transportation and Traffic Code to allow two-wheeled vehicles as a mode of public transportation,” he said.

“Notwithstanding any comprehensive competition review, the Commission considers the availability of motorcycle taxis and future expansion for the entry of more players as an indicator of an emerging market offering additional public transport options for commuters,” he added.

Transportation Secretary Jaime Bautista earlier said that he is not keen on reviewing the Grab-Move It deal as he sees no legal issues with the transaction. 

In a separate statement, the Alliance of Road Users and Motorcycle Advocate Society (ARMAS) welcomed Bautista’s remark that the Grab-Move It deal needs not to be reviewed by the Department of Transportation (DOTr).

The group also echoed Bautista’s hopes that legislation will be passed to legalize motorcycle taxis as a form of public transportation.

Motorcycle taxis currently operate under a government-backed pilot study, in which only three players — Angkas, Joyride, and Move It — are participating.

The pilot study for motorcycle taxis is being done for the DOTr to acquire further information “in aid of legislation,” according to Bautista.

“Sa tingin po namin ay handa na ang mga Pilipinong mananakay at lahat ng iba pang road users para sa ganitong klase ng transportasyon na hatid lamang ay kaginhawaan para sa kanila,” ARMAS said.

(We believe the Filipino commuters are ready for this mode of public transportation that brings convenience to them.)

“Kapag po naging legal na ang motorcycle taxi, magkakaroon ng ibang options ang mga mananakay natin - lalo’t higit ngayong panahon na nagsisibalik na ang mga tao sa kani-kanilang opisina at ang mga estudyante naman sa kanilang mga eskwelahan," the group said.

(When motorcycle taxis are legalized, our commuters will have other options - especially now that people are returning to their offices and schools.) — LA, GMA News