Marcos OKs merger of ULFC, LLFC

President Ferdinand “Bongbong” Marcos Jr. has given the green light on the merger of United Coconut Planters Bank Leasing and Finance Corporation  (ULFC) ) and the Land Bank of the Philippines Leasing and Finance Corporation (LLFC).

“The merger of LLFC and ULFC, with LLFC as the surviving entity, is hereby approved, subject to relevant laws, rules and regulations,” the EO stated.

Both attached to the Department of Finance, the LLFC and ULFC are finance and leasing corporations which are extending credit to businesses for the acquisition of equipment and other assets.

The EO indicated that the Governance Commission for GOCCs (GCG), LLFC and ULFC were ordered to ensure that the merger between the said two entities will comply with Republic Act No. 11232 or the "Revised Corporation Code of the Philippines” and Republic Act No. 10667 or the "Philippine Competition Act."

The said merger shall also transfer all the assets and liabilities of United Coconut Planters Bank (UCPB) to LBP, including its ownership shares in ULFC. 

The merger is pursuant to Section 5(a) of Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011,” whereas, “the GCG en banc finds the merger of LLFC and ULFC to be in the best interest of the State, to eliminate unnecessary overlap in the mandates and functions of LLFC and ULFC.”

Meanwhile, Marcos ordered the absorption of qualified officers and employees from the ULFC affected by the order, whenever applicable. 

“In addition to retirement or separation benefits under existing laws and regulations, the ULFC Board of Directors is hereby authorized to adopt a separation incentive package for affected officers and personnel of ULFC, using as reference the rates prescribed under EO No. 150 (s.2021), and in accordance with other applicable laws, rules and regulations,” the EO stated. 

The said EO was signed on August 6, 2024 by Executive Secretary Lucas Bersamin, by the authority of the President. —VAL, GMA Integrated News