PCC Adjusts the Merger Notification Thresholds

Through Philippine Competition Commission (“PCC“) Commission Resolution No. 01-2024 (the “Resolution”), the PCC raised the thresholds on the notification requirement for merging and acquiring parties for 2024.

Section 17 of Republic Act No. 10668, otherwise known as the Philippine Competition Act (“PCA”), states that parties to a merger or acquisition with a transaction value that satisfies the thresholds and meets the other criteria set by the PCC are required to notify the latter within thirty (30) days from the signing of definitive agreements related to the merger or acquisition.

In line with its power to determine notification thresholds of proposed mergers and acquisitions, on 21 February 2024, the PCC issued the Resolution where it resolved to adjust the notification thresholds to be as follows: 

1. The size of a party exceeds PHP7,800,000,000.00; and 
   
2. The size of the transaction exceeds PHP3,200,000,000.00. Note that this applies to transactions falling under Rule 4, Section 3(b), subsections (1), (2), (3), or (4), or Section 3(d) of the Implementing Rules and Regulations (“IRR”) of the PCA.

The Resolution also states that the revised Size of Party and Size of Transaction shall likewise apply to joint venture transactions under Rule 4, Section 3(d) of the IRR of the PCA. Lastly, the adjusted notification thresholds took effect on 01 March 2024.