PCC M&A Review Moratorium in the Bayanihan 2 Act
14 September 2020
As part of its response to the COVID-19 pandemic, the Bayanihan To Recover As One(Bayanihan 2) Act exempts from compulsory notification those mergers and acquisitions with transaction value of less than P50 billion which are entered into within two (2) years from effectivity of the Bayanihan 2. Section 4(eee)1 of the Bayanihan 2 Act also suspends PCC’s exercise of Motu proprio review of these mergers and acquisitions for a period of one (1) year. Pursuant to this provision, the PCC will be issuing implementing guidelines for pending and future transactions.
As the nation faces the challenges brought by the pandemic, the PCC will do its part as antitrust authority to contribute to the country’s economic recovery and perform its mandate with renewed vigor. In line with the Bayanihan 2’s policy objective of enforcing measures to protect the people from cartels, monopolies, and combinations in restraint of trade, which affect the supply, distribution and movement of essential goods and services, the PCC is intensifying enforcement activities to scan the market for anti-competitive agreements and abusive practices that harm the Filipino people.
The PCC will work even harder to ensure that consumer welfare and competition are safeguarded especially at a time when consumers and small businesses are more vulnerable to unscrupulous business practices. Rest assured that the PCC will exert all efforts to protect competition in the present for the future.
1Bayanihan to Recover As One Act: Sec. 4 (eee): “xxx Provided, finally, That the Philippine Competition Commission (PCC) shall promote business continuity and capacity building, as such, all mergers and acquisitions with transaction values below Fifty billion pesos (P50,000,000,000.00) shall be exempt from compulsory notification under Section 17 of Republic Act No. 10667 or the ‘Philippine Competition Act’ if entered into within a period of two (2) years from the effectivity of this Act, and further, shall be exempt from the PCC’s power to review mergers and acquisitions motu proprio provided in Section 12 of Republic Act No. 10667 for a period of one (1) year from the effectivity of this Act.”