COMMISSION DECISION NO. 18-M-013/2019:
In the Matter of the Proposed Acquisition by East West Banking Corporation of the Philippine Bank of Communications’ Auto Loan Portfolio
The Philippine Competition Commission (PCC) has approved the acquisition by East West Banking Corporation (East West) of the auto loan portfolio of Philippine Bank of Communications (PBCom).
The transaction involves the purchase by East West of a portion of PBCom’s auto loan receivables, specifically limited to dealership-generated accounts, subject to East West’s acceptance, and following due diligence and review of relevant documentation.
In a Commission Decision issued on June 18, the competition authority found the asset acquisition, in particular the auto loan portfolio, will not likely result in the substantial lessening of 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.
East West Bank is a subsidiary of the Filinvest Development Corporation (FDC), the publicly listed holding company of the Filinvest Group. The commercial bank is engaged in providing retail banking, consumer lending, corporate banking, rural banking, and treasury and trust products.
On the other hand, PBCom offers basic commercial banking services such as deposit products, treasury and foreign exchange trading, trade-related services, cash management services, credit and loan facilities, trust and investment management services, as well as ancillary services.